Rupiah Weakens: Economist Says It's Not Solely Due to Lack of Intervention

KOMPAS.com - Economist from CORE Indonesia, Yusuf Rendy Manilet, believes that Bank Indonesia’s (BI) intervention is effective in maintaining market stability when the Rupiah weakens. Although it is acknowledged that BI’s intervention is defensive in nature, aiming to ensure that the weakening occurs in an orderly manner and does not turn into systemic instability.

“Therefore, the current issue with the Rupiah is not simply a matter of insufficient intervention,” he said, as quoted by Kontan, Friday (15/5/2026).

Secondly, the consistency of government policies is crucial, as investors need certainty and are very sensitive to changes in regulations, which significantly affect long-term investment prospects. Thirdly, the prospects for medium-term capital inflows are closely related to Indonesia’s investment climate.

Furthermore, he believes that the root cause of the Rupiah’s pressure lies largely outside the monetary domain, making the task of maintaining its exchange rate a collective one. “What is happening now is that BI is acting as a kind of first responder to problems whose root causes lie outside monetary policy,” he said.

The weakening Rupiah has an impact on the increase in the price of daily necessities. “If this Rupiah weakening is not mitigated quickly, the impact can be immediately felt on production costs, import prices, and even the prices of goods for the community,” explained Misbakhun, as quoted by Kompas.com, Friday (15/5/2026).

Bank Indonesia (BI) is also urged to proactively anticipate further weakening of the Rupiah. “What needs to be maintained is not just the exchange rate. More importantly, it is market confidence and certainty for business actors. Policy communication must be swift, clear, and credible,” he explained.