Rupiah on Edge: The State Speaks and the People Listen
The rupiah has again begun to tremble. Its value continues to weaken against the United States dollar. The government is trying to calm the situation.
Officials speak of the economy’s fundamentals remaining strong, inflation still contained, and growth regarded as safe.
Optimism continues to be projected on television screens and online media.
Yet outside the press conference room, the people hear with different feelings.
Tempeh and tahu makers are recalculating production costs as imported soybeans grow pricier.
Small traders are cutting back on their inventories. Small and medium enterprises (SMEs) are holding back on expansion plans.
Households are beginning to worry as the prices of essentials creep up. The rupiah’s weakening is no longer just a capital-market story; it is beginning to become a kitchen-table story.
At this point a bigger question arises: why, when the rupiah weakens, is the voice most often heard the state’s, while the people merely listen to the consequences?
Whenever economic pressures arise, the government’s communication pattern is almost always the same. The state appears first. Authorities speak. The markets are reassured. The public is asked to stay calm.
The aim is, of course, good. The government should not panic. In modern economics, market psychology is highly influential.
A touch of panic can accelerate capital flight, worsen the exchange rate, and even shake national economic stability.
When the rupiah weakens, attention is directly directed at Bank Indonesia. Will interest rates rise? Will market intervention be undertaken? Are foreign exchange reserves strong enough?
As if the rupiah’s stability rests solely on the central bank.
But the rupiah does not fall alone. Behind it lies a fragile economic structure, heavy import dependence, productivity not yet robust, and a national industry not fully resilient to global shocks.
In other words, the rupiah’s weakness is not merely a monetary issue. It is a national problem.