Rupiah Nears Rp 18,000 as Economist Criticises Foreign Visits' Limited Investment Impact

JAKARTA – The weakening rupiah amid rising unemployment has sparked criticism of the government’s frequent foreign visits aimed at attracting investment. Economist and BPJS Watch Advocacy Coordinator Timboel Siregar said government international trips have not significantly created new jobs domestically. Siregar highlighted the open unemployment rate of around 7.4 million people, plus 11.6 million underemployed individuals still seeking better employment. He said the public expects presidential visits abroad to yield concrete investment realisations that directly create formal jobs. “Repeated foreign visits promise investment inflows to Indonesia, but the promised investments have not significantly materialised to create more jobs,” Siregar told Kompas.com on Thursday (28 May 2026). He added that the new workforce each year continues to grow, from university graduates to high school and vocational school leavers. Siregar noted that layoffs reached around 70,000 in 2024, rising to approximately 80,000 in 2025. By April 2026, layoffs had reached 15,000 workers and are expected to rise further. He stressed the urgent need for formal job creation to ensure people have sufficient income for living expenses. In addition to highlighting the limited investment impact, Siregar criticised the high foreign currency demand for overseas travel amid pressure on the rupiah. He said the rupiah had breached Rp 17,845 per US dollar and could weaken further to between Rp 18,000 and Rp 19,000. Under these conditions, he argued that overseas travel should be limited and focused on priorities that genuinely benefit Indonesia’s economy.