Jakarta - Indonesia's rupiah plunged to 17,612 rupiah against 1 US dollar on Friday, 15 May 2026, a historic low since its weakest level since the 1997–1998's Asian financial crisis, triggered by the escalating tensions in West Asia region and sustained capital outflows battered the currency for a seventh consecutive week
Indonesian President Prabowo Subianto responded the freefall of rupiah by urging the public to stay calm, dismissing fears of an economic collapse while endorsing a seven-point stabilization plan by Bank Indonesia.
Speaking at the inauguration of Marsinah Labor Hero Museum in Nganjuk, East Java, on Saturday, 16 May, President Prabowo brushed off alarm over the currency's slide with characteristic directness.
"There are always those who say, any moment now Indonesia will collapse, will go into chaos —the rupiah is like this, the dollar is like that. But, people in the villages don't use dollars," Prabowo said.
"Food is secure. Energy is secure. Many countries are in a panic, but Indonesia is still okay," he added.
He explained that when other countries have been facing difficulties, Indonesia has been able to assist them by giving an example of exporting fertilizer to neighboring country, Australia.
The remarks drew immediate attention from analysts and markets. According to Trading Economics, the rupiah has lost approximately 5 percent of its value year-to-date and 6.65 percent over the past 12 months.
Currency observer Ibrahim Assuabi, director of PT Traze Andalan Futures, warned the situation remains precarious. and could be worse.
"If it reaches 18,000 rupiah (per US dollar) in May, there is a high possibility that the rupiah will break the level of 22,000 rupiah per US dollar," he forecast on Friday.
