Rupiah Plummets: MP Suggests Bank Indonesia Raise Interest Rates
JAKARTA, KOMPAS.com - Member of DPR’s Commission XI, Eric Hermawan, has asked Bank Indonesia (BI) to raise its benchmark interest rate (BI Rate) in order to curb the Rupiah’s weakening against the US dollar, which today has fallen below Rp 17,600.
“Bank Indonesia works day and night to maintain a stable BI Rate, and I suggest that BI raise interest rates so that there is a balance for the dollar, thus (the dollar) will fall,” said Eric in a statement on Sunday (May 17, 2026).
Eric himself believes that the Rupiah’s weakening is not due to the Financial System Stability Committee (KSSK) not working hard.
“The government, through the Minister of Finance, has worked hard to curb the rise of the dollar with several banking programs that promote the growth of MSMEs and the corporate sector,” he said.
Meanwhile, from the capital market side, Eric believes that the OJK has also done its best to stabilize the stock exchange.
In addition, Eric also asked food entrepreneurs not to speculate by unilaterally raising prices. According to him, this will trigger a surge in inflation which will directly impact the purchasing power of lower-income people.
When inaugurating 1,061 Red and White Village/Urban Cooperatives on Saturday (May 16, 2026), President Prabowo Subianto stated that the public does not need to worry about the Rupiah’s weakening as long as Minister of Finance Purbaya Yudhi Sadewa is still smiling.
“Purbaya is very popular right now. As long as Purbaya can smile, just be calm, don’t worry. Even if the dollar reaches thousands, it doesn’t matter because you in the villages don’t use dollars, does it? It’s those who are worried, those who like to go abroad, who should be concerned,” said Prabowo.
Prabowo claims that Indonesia has a strong economy and fundamentals and people must believe in that.
“Believe that our economy is strong, our fundamentals are strong. Let people say whatever they want, Indonesia is strong. Believe in our strength. Believe in our people. All leaders must work for the people,” he said.
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