Surya Paloh Confident Rupiah Will Stabilise Again Following President's Speech

Surya Paloh, the chairman of NasDem, expressed optimism about the strengthening of the rupiah in the wake of President Prabowo Subianto’s address on the Macro Economic Framework and Pokok-Pokok Kebijakan Fiskal (KEM-PPKF) for the 2027 Fiscal Year. Paloh made the remarks after attending the DPR RI plenary session at the Parliament Complex in Jakarta on Wednesday, 20 May. He stressed that optimism is a crucial asset for the nation as it faces economic challenges, and he said the President’s speech revived patriotic spirit by underscoring the implementation of Pasal 33 UUD 1945 in the national economy.

“Besides optimism, what else have we got? That may be what we need to understand. Our last capital is that optimism itself,” Paloh told Antara on Wednesday. He also urged all sections of society to maintain confidence in the nation’s economic stability, saying: “What is left is optimism. If that ends, well, we do not have anything left.”

In the KEM-PPKF 2027 document, the government sets the rupiah’s target against the United States dollar at around Rp16,800 to Rp17,500. The target followed the rupiah’s brief weakest level of Rp17,706 per USD in mid-May 2026. President Prabowo Subianto, in his speech, reaffirmed the government’s commitment to safeguarding monetary stability through a measured fiscal strategy, stating: “Our fiscal and monetary strategies must be capable of keeping our exchange rate stable against world currencies.”

In addition to the exchange-rate target, the government projects domestic inflation to be contained in a range of 1.5% to 3.5%. This measure aims to protect purchasing power while strengthening the rupiah’s position in global markets. The government also places the 10‑year sovereign bond yield in the macro-fiscal 2027 framework at approximately 6.5% to 7.3% as part of the macro-fiscal assumptions.