What Anies Baswedan Says on Rupiah Plunge and Its Impact

May 20, 2026 | 10:20 pm

TEMPO.CO, Jakarta - Anies Baswedan is paying attention to the national economy, which is currently in a precarious state. One telling indicator is the recent plunge of the Indonesian rupiah against the US dollar."The weakening exchange rate of the rupiah against the dollar is exactly what I have already pointed out on my social media," Anies Baswedan said during a graduation ceremony for undergraduate and postgraduate students at Gadjah Mada University (UGM) in Yogyakarta on Wednesday, May 20, 2026.Anies noted that the current depreciation of the rupiah has hit a historical low, nearly touching 18,000 against the US dollar. The impact of this decline, he added, is being felt directly by ordinary citizens.Some of the most visible impacts include a surge in commodity prices, shrinking employment opportunities, a drop in household purchasing power, and the erosion of citizens' savings, all of which are disrupting daily lives.Under these circumstances, Anies warned that the nation’s future challenges will only grow more complex. This is particularly true given the escalating global geopolitical uncertainties and the looming shadow of conflict in the Middle East acting as critical external factors.He stated that weathering a single test is already a heavy burden, yet Indonesia must simultaneously confront several major crises, multiplying the weight on its shoulders. "In a high-pressure situation like this, what the market and the public actually need is one fundamental thing: certainty," he asserted.Anies then elaborated that the certainty he refers to is not a superficial calm or an attempt to mask deep-seated problems with sweet promises. "Instead, it is the certainty that arises from transparency and honesty, coupled with a clear policy direction from a government that fully understands where this nation is headed," he said.However, the former Minister of Education lamented the current administration's failure to provide that stability. He also criticized the selective presentation of data, where only positive achievements are exposed to the public while negative indicators are concealed."The responses from public officials to this urgent situation often sound too dismissive, even accompanied by jokes," Anies remarked.He pointed out that policy inconsistency is what undermines public trust in the government, given that official statements can change from one day to the next. This confuses market players and the public, prompting some industrial sectors to either hold back investments or decide to leave Indonesia.This phenomenon, according to Anies, is exacerbated by a lack of leadership by example from the government. "Amid a condition where the people are asked to be frugal and tighten their belts, the government is deemed to be busy with agendas far from reality, through extravagance at the top levels while budget constraints are enforced at the bottom levels, which seems to be a form of social insensitivity."Furthermore, Anies reminded that economic danger signals are flashing from all directions, ranging from domestic economic analyses and international financial institution projections to national and international media reports that continue to highlight Indonesia's vulnerabilities.He also mentioned that it is impossible for all these entities to be mistaken at the same time. "Considering that the lives of hundreds of millions of people are at stake right now, this crisis must be handled with the same level of seriousness by the government," he said.For this reason, the former presidential candidate in 2024 strongly urged the administration to take concrete corrective actions. "Stop offering tranquilizers to the public. Disclose the raw data. Convey the issues honestly," Anies demanded.He urged officials to promptly formulate a clear, consistent policy direction and to steer the state administration solidly and wisely from top to bottom, as these steps are vital to calming market sentiments and soothing public anxieties.Anies also called on all layers of society to brace themselves for the reality that, like it or not, challenging times still lie ahead. "Because the pressure on the economy shows no signs of easing."In addition, Anies stated that the environmental sector also poses a serious threat following warnings from scientists about the arrival of the strongest El Nino phenomenon in recorded history. "The threat of extreme weather is on the horizon, and the outside world is in turmoil," he said.Anies concluded by inviting the public to maintain optimism that Indonesia will overcome these trials. According to him, every stakeholder must remain hopeful that these difficult times can be weathered. "As long as we proceed with open eyes, not with fabricated illusions. We can definitely do it, but under one condition: seriousness. Let's take the administration of this nation seriously."Read: Prabowo Cites 'Deep State' at Parliament Speech: What Is It?Click here to get the latest news updates from Tempo on Google News