US Dollar Hits Rp17,600 as Misbakhun Confirms No Bank Defaults

Chairman of DPR Commission XI Mukhamad Misbakhun confirmed there are no reports of bank defaults as the US dollar reached Rp17,600. He made the statement at the Jogja Financial Festival 2026 held at JEC in Bantul, Yogyakarta last Saturday (23 May 2026).

“There are currently no banks or private entities reporting defaults despite the rupiah facing pressure at Rp17,600,” Misbakhun said.

He noted that Indonesia’s economic structure this year differs significantly from the 1998 monetary crisis period when the rupiah breached Rp17,000 per US dollar. During the 1998 crisis, an economic bubble occurred due to overheating across various sectors, with banks and private entities taking foreign currency-denominated loans without hedging.

“When the rupiah weakened, they defaulted,” Misbakhun explained. However, he added that some entities also benefited from unexpected windfall gains during that period.

“The same applies today, but only in certain sectors. This means our economy is fundamentally strong. In 1998, growth was minus 13% and inflation was rampant. Now, our economy is growing,” he stressed.

Indonesia is among G20 nations with economic growth exceeding 5%, and has recorded a 71-month trade surplus, he added.

He attributed concerns over a repeat of the 1998 crisis to social media’s influence, which he said is shaping economic sentiment. “We are facing a situation where fundamentals clash with sentiment, reality versus social media,” he said.