Rancak Media – JAKARTA — Primus Yustisio, a member of Commission XI of the House of Representatives (DPR) from the National Mandate Party (PAN) faction, has urged Bank Indonesia (BI) Governor Perry Warjiyo to consider resigning amidst the recent significant weakening of the rupiah.
The Indonesian rupiah has continued its depreciation, today breaching the Rp17,600 per US dollar mark. Primus asserted that the central bank cannot remain passive while the rupiah consistently weakens against not only the US dollar but also other major global currencies.
“Why is this happening? Mr. Perry, with all due respect, sometimes when we take a gentlemanly action, it is not an insult. I give an example: perhaps now is the time for you to resign. There is nothing wrong with it, and of course, the decision is yours. But it is not a gesture of disrespect,” he stated during a meeting between DPR Commission XI and Bank Indonesia at the Senayan Parliament Complex in Jakarta on Monday, May 18, 2026.
Purbaya Emphasizes Current Rupiah Depreciation Differs from 1997-1998
According to Primus, Bank Indonesia has lost both trust and credibility as the exchange rate continues to deviate significantly from the state budget (APBN) target of Rp16,500 per US dollar.
“As a leader, as the primary figure, you must be gentleman; you must be brave,” the politician, formerly an actor, conveyed to the two-term BI Governor.
Rupiah Plunges to Rp17,600 per US Dollar, DPR Chides BI on Investor Confidence and Forex Reserves
Primus further suggested that the outcomes of BI’s duties and functions appear anomalous when juxtaposed with the robust economic growth of 5.61% recorded in the first quarter of 2026.
“If compared to the dollar, it’s a comparison with the dollar, and ironically, this applies to all currencies. We are weakening against Singapore, Australia, against the Malaysian Ringgit, Saudi Riyal, Hong Kong, and the Euro,” he elaborated, underscoring the broad-based depreciation.
How Rupiah Weakening Erodes Public Purchasing Power
During the same parliamentary session, Harris Turino, a member of DPR Commission XI from the Indonesian Democratic Party of Struggle (PDIP) faction, also voiced concerns. One of the key issues he highlighted regarding the rupiah’s depreciation was its direct impact on import prices.
“We know that my colleagues just mentioned the exchange rate is already Rp17,600. There’s even a jibe circulating that if it hits Rp17,845, Indonesia would be ‘independent’ again. Sir, you say the rupiah is relatively stable compared to other countries. The problem, as felt by the public, is that import prices are rising. Industrial costs are also increasing. Food and energy pressures are intensifying, and the overall economic perception is weakening,” Harris explained, capturing the public’s growing apprehension.
Harris acknowledged Bank Indonesia’s substantial interventions, noting the significant utilization of foreign exchange reserves. These reserves have reportedly dwindled from US$156.5 billion in December 2025 to US$146.2 billion by April 2026.
Beyond drawing down reserves, BI’s intervention strategies have also included the use of Rupiah Securities Bank Indonesia (SRBI), with yields increased to 6.4%, alongside considerable purchases of Government Securities (SBN) in the secondary market—Rp332 trillion in 2025, with an additional Rp133 trillion allocated recently.
From a regulatory standpoint, measures to tighten dollar purchases have been implemented, notably by lowering the threshold for dollar exchanges requiring underlying transactions from US$50,000 to US$25,000.
While Harris conceded that global factors largely influence the current situation, he also emphasized the presence of pressing domestic issues, including challenges in fiscal management.
“It must be honestly admitted: there are fiscal problems. There are issues with the current account deficit. There has been a substantial outflow of capital, and there are concerns regarding investor confidence in the Indonesian economy. We know that the Rupiah is an unbiased predictor of Indonesia’s economic condition,” he concluded, stressing the multifaceted nature of the challenge.
Summary
DPR member Primus Yustisio has urged Bank Indonesia Governor Perry Warjiyo to resign amidst the significant depreciation of the rupiah, which has breached Rp17,600 per US dollar and weakened against other major global currencies. Primus asserted that the central bank has lost trust and credibility, especially as the exchange rate deviates substantially from the state budget target despite robust economic growth. He criticized BI for its perceived passivity in addressing the broad-based currency weakening.
Another DPR member, Harris Turino, echoed concerns, highlighting the rupiah’s depreciation impacts import prices, industrial costs, and overall public economic perception. He acknowledged Bank Indonesia’s substantial interventions, which included a significant draw-down of foreign exchange reserves and the use of various monetary instruments and regulatory measures. Harris emphasized that while global factors are influential, domestic issues like fiscal problems, capital outflow, and concerns over investor confidence also contribute to the economic challenges.
