Indonesia's Economic Strength Tied to Public Welfare, Not Just Rupiah Rate, Lawmaker Says

Indonesia's economic strength should be evaluated based on its citizens' purchasing power and overall welfare, rather than solely on the rupiah's exchange rate against the US dollar, stated Azis Subekti, a member of the Indonesian House of Representatives from the Gerindra party.

“

Most Indonesians do not monitor the exchange rate every day. They look at the price of chili peppers, the price of rice, transportation costs, the price of cooking oil, and other household needs. That is where the economic strength of a country is truly tested.

Subekti argued that public attention is often disproportionately focused on currency fluctuations, while the more pressing concerns for most Indonesians are the prices of daily necessities. "Most Indonesians do not monitor the exchange rate every day. They look at the price of chili peppers, the price of rice, transportation costs, the price of cooking oil, and other household needs. That is where the economic strength of a country is truly tested," Subekti said on Thursday (June 4, 2026).

He emphasized that while a weakening rupiah requires vigilance, it becomes a significant problem only when it leads to increased prices for essential goods. "The weakening of the rupiah only becomes a major threat when it successfully enters the people's dining tables. Therefore, our main focus is not just maintaining exchange rate stability, but ensuring that the basic needs of the community remain affordable," he added. Subekti pointed to global economic history, citing Japan, South Korea, and China as examples of nations that achieved economic growth despite currency challenges, attributing their success to production capacity, technological mastery, job creation, and inflation control.

“

The weakening of the rupiah only becomes a major threat when it successfully enters the people's dining tables. Therefore, our main focus is not just maintaining exchange rate stability, but ensuring that the basic needs of the community remain affordable.

Referencing data from Indonesia's Central Statistics Agency (BPS) for May 2026, which showed annual inflation at 3.08 percent, Subekti noted that the largest contributors to inflation came from the food, beverage, and tobacco sectors, with a 4.94 percent inflation rate in that group. He highlighted significant price increases for commodities such as chili peppers (25.64 percent), tomatoes (9.82 percent), red onions (6.65 percent), and cooking oil (2.87 percent) in May 2026. Subekti asserted that these price surges cannot be solely attributed to the rupiah's exchange rate, pointing to other dominant factors like distribution issues, weather, long supply chains, high logistics costs, and regional production imbalances.

“

We see that almost half of the inflationary pressure comes from the basic needs of the community. This sends a very clear message that the main battlefield of our economy right now is food stability.