Rupiah Depreciation Drives Influx of Foreign Tourists, Says DPR Commission VII: Cannot Be Left Unchecked

The Chairman of Commission VII of the Indonesian House of Representatives (DPR RI), Saleh Partaonan Daulay, has criticised the fact that the plummeting Rupiah is causing foreign nationals to flock to Indonesia, particularly Jakarta. Saleh stated that this situation cannot be allowed to persist indefinitely.

He initially noted that there are many reasons why foreigners visit Indonesia, adding that the current depreciation of the Rupiah serves as a significant attraction. “I cannot speak specifically about currency exchange rates, as it is not my field. What is clear is that the exchange rate difference is causing many foreigners, especially from Singapore, to stop by for shopping. They feel there is an advantage to shopping directly in Indonesia. This is a consequence of a free and open market; anyone is allowed to shop anywhere,” Saleh said when contacted on Wednesday (3/6/2026).

He assessed that, generally, Indonesian traders should be pleased with this condition, as the commodities they sell tend to move faster and in larger quantities. “They certainly benefit from the transaction values involved,” he added.

However, he urged the government not to let this condition continue indefinitely, noting that there are still negative impacts resulting from the Rupiah’s decline. “If it reaches a certain point, I think it is fine. But this phenomenon cannot be allowed to continue indefinitely. The potential negative impacts on our economy must be avoided,” said the Deputy Chairman of the PAN party.

While he expressed satisfaction with the increase in foreign tourists, he advised that this should not disrupt the nation’s economic stability. “On the contrary, their visits should be utilised to increase Indonesia’s competitiveness. At the very least, the Indonesian economy must become more dominant regionally within the ASEAN area. How these temporary visits affect the economy requires expert explanation and calculation. What is clear is that this phenomenon must be maximised for the benefit of traders and business actors in Indonesia. There is no need for alarm; we should take the best lesson from this,” he continued.

Singaporean media have highlighted the weakening Rupiah alongside recent street crimes in Jakarta, including viral videos of robberies targeting tourists. However, Singaporean tourists are reported to be largely unaffected by these concerns due to their primary objectives. In an article titled “Jakarta crime fears rise, but rupiah slide keeps Singaporeans coming for shopping and food”, The Straits Times noted that for many, the weak exchange rate has enhanced Jakarta’s appeal as a destination for shopping and dining.

“There is no time to be afraid—there is too much shopping to be done,” joked Noraini Rahmat during an interview with The Straits Times on Monday (1/6). The 52-year-old Singaporean, who works in the healthcare industry, was in Jakarta with her two sisters for what she described as a “massive shopping marathon” from 22 to 25 May. “Of course, when videos like that go viral, people will talk about it. But honestly, we just try to be careful, just as we would in Singapore or other large cities. Don’t stand too close to the road with your phone visible, don’t leave your bag open. You know, the basic things,” she added.