Transparency: The Key to Preventing a Property Slump as Rupiah Plummets to Rp 17,670

JAKARTA — As the Rupiah exchange rate plummeted to Rp 17,670 per US dollar on Monday (18/05/2026), the national property industry was immediately confronted with a harsh reality. This depreciation is viewed as a severe blow that reshapes business calculations from upstream to downstream. In such a critical situation, the primary foundation required by the market is not blind optimism, but rather full transparency and valid economic databases provided by the government. Without clear, accountable information, a crisis of confidence could completely halt the flow of investment capital.

The Residential Property Price Index (IHPR) for the primary market grew by only 0.62 per cent annually, a decline from the 0.83 per cent recorded in the previous quarter. This shrinking growth rate coincides with a sharp decline in transaction volumes, which have dropped by 25.67 per cent in aggregate. This reality indicates that developers must exercise restraint, as market purchasing power can no longer keep pace with surging production costs.

To prevent a widespread crisis of confidence, the government can no longer rely on old, defensive communication patterns or merely present aggressive growth narratives. Hendra Hartono, CEO of Leads Property Services Indonesia, emphasised that market players and global investors require honest data, whether during periods of growth or slowdown. Legal clarity and exposure to empirical facts are the fundamental bases for investors to calculate risks in a measurable manner.

The government is also called upon to consolidate a credible team of economic advisors, reduce state budget waste, and conduct a thorough competency evaluation of the cabinet members. “Investor confidence can only be restored if the government leads by example in cutting fiscal waste,” Hendra told Kompas.com on Monday (18/05/2026). Furthermore, direct dialogue with business actors to present mitigation strategies that are scientifically accountable is a step that cannot be delayed.