Rupiah Weakens, DPR Member: This is an Alarm for the Government

JAKARTA - A member of the House of Representatives Commission XI, Bertu Merlas, has reminded the government to be wary of the current weakening of the rupiah exchange rate against the US dollar. According to him, the rupiah’s depreciation has the potential to pressure public purchasing power as it could directly impact rising prices of imported goods and domestic production costs. “The current rupiah condition must serve as an alarm for the government. This weakening directly affects the increase in prices of imported goods and production costs. If prices rise while public incomes stagnate, purchasing power will plummet,” Bertu stated in a written release on Friday (24/4/2026). Therefore, the government needs to promptly anticipate the potential surge in inflation, especially for staple needs most felt by low-income communities. “If not mitigated quickly, this cost burden will be passed on to consumers through price increases of finished goods, ultimately eroding public welfare directly,” he said. “Without government intervention to stabilise prices of staple needs, the risk of socio-economic instability will widen considerably,” he added. For instance, through strengthening market operations and distribution of basic commodities, targeted social assistance distribution, as well as easing access to financing and incentives for SMEs. “Controlling inflation is the primary key. The government must ensure secure supply and stable prices. Subsidies and social assistance must truly reach the rightful hands so that people’s purchasing power is not further eroded,” he concluded. Based on BI data, the rupiah stood at Rp17,140 per US dollar on 21 April 2026, or weakened by 0.87 percent compared to the end-of-March 2026 position. However, BI Governor Perry Warjiyo stated that fundamentally, the rupiah should still be able to move stronger in line with the solid performance of the domestic economy. “We emphasise that the current rupiah exchange rate is undervalued compared to the fundamentals,” Perry said at a press conference on Wednesday (22/4/2026). To maintain stability, BI continues to intervene in the foreign exchange market, both through spot transactions, DNDF, and the offshore non-deliverable forward (NDF) market. In addition, the central bank is also maintaining adequate foreign exchange reserves and enhancing the attractiveness of domestic financial instruments to attract foreign capital inflows. BI emphasises that monetary policy remains directed at maintaining exchange rate and inflation stability, while macroprudential policy and the payment system are focused on supporting economic growth.