Indonesian Parliament Presses BI Governor as Rupiah Hits New Low

TEMPO.CO, Jakarta - Members of Indonesia’s House of Representatives Commission XI questioned Bank Indonesia Governor Perry Warjiyo over the weakening rupiah during a hearing at the parliamentary complex in Jakarta on Monday, May 18, 2026.

The finance and banking commission raised concerns after the currency fell to a new low of above Rp17,600 per US dollar.

Harris Turino, a lawmaker from the Indonesian Democratic Party of Struggle (PDI-P), questioned the effectiveness of the central bank’s policy measures, noting that the rupiah continued to depreciate despite various interventions.

“All the instruments owned by Bank Indonesia have been used. But why does the rupiah continue to weaken?” he asked during the session.

Harris acknowledged that global pressures were a major factor behind the currency’s decline but said domestic issues were also contributing to the situation.

“This must be honestly acknowledged. There are problems in fiscal policy, issues in the current account deficit, significant capital outflows, and declining investor confidence in Indonesia’s economy,” he said.

During the session, lawmakers also offered policy suggestions. Eric Hermawan of the Golkar Party urged Bank Indonesia to consider raising its benchmark interest rate to stabilize the currency.

Meanwhile, Primus Yustisio of the National Mandate Party (PAN) went further, suggesting that Governor Perry step down from his position.

“Perhaps it is time for you to step down,” he said, arguing that resignation would not be dishonorable and could be viewed differently compared to practices in some neighboring countries.

By Monday afternoon, the rupiah stood at Rp17,659 per US dollar. The currency has remained near the 17,000 level since early April 2026 and has yet to show a sustained recovery.

Read: JCI Plunges 4% as Rupiah Falls to 17,672 Against US Dollar

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