The DPR Confirms Indonesia's Economic Situation Is Stable, Here Is the Evidence!

Jakarta, CNBC Indonesia – Chairman of Commission XI of the Indonesian House of Representatives, Mukhamad Misbakhun, spoke frankly about Indonesia’s current economic condition. He asserted that Indonesia’s present circumstances are not comparable with the 1998 crisis.

This response came amid public concern over the rupiah’s exchange rate weakening against the USD after briefly rising above Rp17,600 per USD. The situation has been amplified by social media reports claiming that Indonesia is heading for bankruptcy. He urged the public not to worry excessively, arguing that Indonesia’s fundamentals remain strong.

‘If the most fundamental challenge today is education like this—convincing our people to place hope in the fundamentals rather than in sentiment, countering social media—we must reassure the Indonesian public,’ Misbakhun said at Jogja Financial Festival 2026 on Saturday, 23 May 2026.

He also assured the public that the rupiah’s depreciation today is not the same as in 1998. In 1998 the rupiah weakened from Rp2,400 to Rp17,800 per USD. Currently, it is from around Rp16,000 per USD, indicating a much larger gap.

Furthermore, Indonesia’s economic growth has been robust when compared with 1998. Through Q1-2026 the economy grew by 5.61%, whereas in 1998 it contracted by 13%.

By contrast, he notes that in 1998 many private-sector companies defaulted. He considers this to be very different from the current conditions.

In short, the fundamentals are sound, but sentiment is being shaped by social media. ‘Our minds are influenced by what we watch on TikTok,’ he remarked.