Prabowo’s Statement on Rural Communities Adds Pressure on Rupiah, Analyst Says

JAKARTA, Jakartaweekly.com – A statement by President Prabowo Subianto regarding rural communities being unaffected by the rise of the United States dollar received a negative response from the market. The situation is believed to have added pressure on the rupiah, which continues to weaken against the US dollar.

Currency and commodity analyst Ibrahim Assuaibi said the President’s remarks on the weakening rupiah were perceived by the market as a sign of government confusion in dealing with pressure on the domestic currency.

“President Prabowo’s statement has also had a fatal impact on the weakening of the rupiah,” he told reporters on Monday, May 18, 2026.

According to Ibrahim, the statement may have stemmed from inaccurate information received by the President from his aides regarding conditions in rural communities. He noted that people in rural areas now have much broader access to information thanks to technological developments.

“Besides understanding dollar movements, many people in rural areas today also understand stocks and investments,” he said.

He added that the President’s remarks, which came amid various domestic and global sentiments, further worsened pressure on the rupiah. At the opening of trading on Monday, May 18, 2026, the rupiah weakened by 75 points to 17,672 per US dollar.

Input on Oil Demand Considered More Important

Ibrahim said the government should focus more on delivering concrete measures to address energy issues and maintain economic stability so the rupiah can strengthen again against the US dollar.

For example, he said, the government could provide information about plans to address Indonesia’s oil import demand of 1.5 million barrels per day by producing B50 biodiesel domestically.

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