By: Dina Maulida)*
The stability of the rupiah exchange rate reflects the fundamental strength of the Indonesian economy and is also a major indicator of market confidence in government policies. In facing increasingly dynamic external challenges (such as global financial market turmoil, geopolitical tensions, and economic protectionist policies of a number of countries), the Indonesian government has taken proactive steps by launching six economic stimulus packages worth IDR24.44 trillion. This step deserves appreciation as a form of the state’s commitment to maintaining national economic resilience and people’s purchasing power, while also supporting the stability of the rupiah exchange rate against the US dollar.
According to Bank Indonesia (BI), Indonesia’s foreign exchange reserves (forex reserves) at the end of May 2025 remained high at US$152.5 billion or equivalent to Rp2,485.7 trillion. This is a strong signal that the national economic fundamentals remain solid despite increasing global pressure. Executive Director of the BI Communication Department, Ramdan Denny Prakoso, explained that the stability of the forex reserves position is supported by tax and service revenues as well as foreign exchange from the oil and gas sector, which is able to offset the government’s foreign debt payment obligations.
In addition, the synergy between BI and the government in maintaining the stability of the rupiah exchange rate is a strategic step amid high global fluctuations. This rupiah exchange rate stabilization policy is not only a symbol of economic resilience, but also a strategy to create trust in the eyes of market players. The rupiah exchange rate which remains stable at around Rp16,300 per US dollar shows the effectiveness of the fiscal and monetary policy mix implemented by the government together with Bank Indonesia.
From the fiscal side, the government launched six stimulus programs targeting strategic sectors to boost public consumption and support domestic economic mobility. President Director of PT Doo Financial Futures, Ariston Tjendra, assessed that this stimulus has proven to have a positive impact on the stability of the rupiah exchange rate. Five of the six stimulus packages rolled out by the government have a direct focus on increasing people’s purchasing power and economic turnover, especially during the school holiday momentum in June-July 2025.
The first stimulus is in the form of a discount on transportation modes to encourage community mobility, which will indirectly strengthen the tourism sector and inter-regional trade. The second stimulus, namely a 20 percent toll rate cut by the Toll Road Business Entity (BUJT), also encourages the smooth distribution of goods and services. Third, the expansion of social assistance in the form of distributing 10 kg of rice to low-income communities is an important instrument in maintaining food security.
Fourth, the government is distributing Wage Subsidy Assistance (BSU) for 17.3 million workers and 565 thousand honorary teachers who earn less than Rp3.5 million per month. This is not only a form of social concern, but also a form of short-term investment in maintaining household consumption, which has been the backbone of the national economy. Fifth, a 50 percent discount on Work Accident Insurance (JKK) contributions for workers in labor-intensive sectors provides additional breath for business actors to continue to be able to maintain operations and absorb labor.
Although the electricity tariff discount plan was eventually canceled on the grounds of fiscal efficiency, the government took corrective steps by increasing the BSU allocation from the initial IDR 150 thousand to IDR 300 thousand per month. This adjustment proves that the government remains adaptive in formulating policies, prioritizing the effectiveness of the impact on the real economy. All of these programs are funded from the 2025 State Budget (APBN), which is allocated through non-priority spending efficiency, optimization of ministry/institution budgets, and utilization of excess budget balances (SAL).
Ariston Tjendra emphasized that this stimulus is a reflection of Indonesia’s economic resilience in responding to global dynamics, including the increase in export-import tariffs imposed by the United States government under Donald Trump’s leadership. When many developing countries experienced heavy pressure on their currency exchange rates, Indonesia was able to maintain the stability of the rupiah with a mix of targeted policies.
Meanwhile, currency observer Ibrahim Assuaibi also welcomed the economic stimulus announced directly by Indonesian President Prabowo Subianto. According to him, this Rp24.44 trillion program not only strengthens people’s purchasing power but also provides a positive signal to investors. In the current global economic slowdown, the government’s steps to encourage domestic consumption and accelerate state spending are very crucial.
Ibrahim added that the acceleration of budget realization that was previously delayed due to the reallocation process, needs to be implemented immediately so that the impact is felt in the field. When the government is actively present through spending and subsidies, market expectations regarding the direction of the national economy will strengthen, which in the end can attract foreign capital flows back to the Indonesian capital market. This is important considering that one of the causes of pressure on the rupiah in recent times is the outflow of foreign funds due to global uncertainty.
The launch of this economic stimulus is also part of the transition strategy towards a more inclusive economic resilience. The government is not only maintaining the stability of the rupiah in the short term, but also strengthening the foundation of growth through strengthening consumption, social protection, and incentives for labor-intensive sectors that can absorb large workforces.
The public should be proud because in the midst of uncertain global shocks, the Indonesian government is present with concrete and adaptive solutions. The well-designed and carefully funded economic stimulus shows that this country has the capacity to face challenges and turn them into opportunities.
)* The author is an economic observer.
