SBY Welcomes Rupiah and IHSG Rebound: Thank You, Prabowo Government

Indonesia’s 6th President, Susilo Bambang Yudhoyono (SBY), has welcomed the significant strengthening of the rupiah exchange rate and the Jakarta Composite Index (IHSG) over the past two days, 9-10 June. The rupiah exchange rate stood at Rp18,141 per US dollar on Tuesday morning (9/6), before further strengthening to Rp17,912 per US dollar in early trading on Wednesday morning (10/6). Meanwhile, the IHSG gained 82.58 points, or 1.44 percent, to reach 5,829 at the start of trading yesterday. “Congratulations and thank you to the nation and the government. Hopefully this is a good beginning,” SBY said via his official Twitter account, @SBYudhoyono, on Wednesday (10/6). SBY stated that the administration of President Prabowo Subianto still possesses the political and economic resources to overcome the current economic pressures. According to him, options and solutions from the monetary and fiscal authorities remain available, enabling the government to successfully halt the process of the rupiah and IHSG’s consecutive, large-scale weakening. “That is why the policies implemented by Bank Indonesia, certainly in synergy with the government, are one of the positive factors in stopping the collapse of the rupiah and the IHSG,” he said. “Otherwise, the weakening of our shares and currency could be unstoppable. This is because the real economy factors, primarily our fiscal situation and state budget, including the burden of debt that encumbers us, have become intertwined with psychological factors and negative market perceptions,” SBY added. The Chairman of the Democratic Party’s High Council expressed hope that the government would continue to take economic stabilisation measures, such as restoring the health of the state budget and limiting and controlling the amount of government debt. Furthermore, SBY urged the prevention of price increases for goods and services that could batter people’s livelihoods, as well as the restoration of investor confidence. “Enhancing more effective communication so that government policies and measures are understood by the public and the market. Stopping various speculations and uncertainties,” he said. SBY also asked the government to protect citizens who are severely affected by the economic situation, including the impact of fuel price hikes. “I know, from being well-experienced in handling economic pressures like this when I led Indonesia previously, that all these government efforts certainly require time,” he remarked. “Stronger public support is needed. Remember, ‘in crucial things, unity’. ‘In important things, dialogue’, and accommodate constructive diversity of views. Rational thinking, appropriate policies, and serious real actions are extremely important,” SBY added.