Indonesia's economic jitters send Rupiah lower

Indonesia [Jakarta], June 5: Indonesia's rupiah hit more than 18,000 per dollar for the first time Thursday as the country is stung by surging energy costs, while lawmakers passed a bill expanding oversight of the central bank that raised concerns over its independence. Bank Indonesia has in moved to bolster the currency, which has been hammered amid mounting concerns about the state of Southeast Asia's biggest economy.
But on Thursday, the unit broke the psychological 18,000 barrier against the greenback. The country's stock market sank nearly four percent and has lost a third of its value in 2026.
Parliament, meanwhile, gave the green light to a legislative amendment expanding the central bank's mandate to include responsibility for economic growth. It also allows lawmakers to evaluate Bank Indonesia's performance.
The new parliamentary oversight will also apply to the Indonesia Deposit Insurance Corporation (LPS), tasked with guaranteeing bank deposits and ensuring banking system stability, and the Financial Services Authority (OJK) financial regulator.
Finance Minister Purbaya Yudhi Sadewa said Wednesday the legislative amendment was aimed at boosting economic growth and enhancing global competitiveness as Indonesia's economy grapples with a spike in global oil prices. "It's not just about exchange rate stability, or just about inflation. It's also about paying attention to economic growth and creating jobs," he said.
Source: Qatar Tribune