BADUNG, BALINEWS – Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, has stressed the importance of strengthening the country’s economic fundamentals to withstand global pressures, particularly fluctuations in the rupiah against the US dollar and the risk of higher interest rates.
Airlangga said exchange rate volatility was a common phenomenon in many countries and should not trigger panic. Instead, he emphasized that Indonesia must maintain strong economic fundamentals amid ongoing global uncertainty.
“Currencies fluctuate against the US dollar everywhere. In some countries, the fluctuations have reached nearly 50 percent. Meanwhile, our exchange rate has been in the range of 17,000 to 18,000 rupiah per US dollar. So, of course, we do not need to panic. What we need to ensure is that our fundamentals remain strong,” Airlangga said on the sidelines of the Government Credit Program Forum in Badung on Thursday (October 29, 2026).
He explained that potential interest rate increases in the United States warranted close attention because they could encourage capital flows toward the country. Such developments also need to be considered when determining domestic interest rate policy.
“That is why, in recent times, Bank Indonesia Governor has held off on raising interest rates. We appreciate this because it has been very helpful to the national economy,” he said.
Airlangga added that economic resilience depended not only on fundamental conditions but also on market sentiment. Therefore, maintaining economic stability required coordinated efforts to help Indonesia better withstand changes in the global economic environment.
Beyond maintaining macroeconomic stability, Airlangga highlighted the importance of expanding support for locally produced goods from micro, small, and medium enterprises (MSMEs).
He said domestic products played an important role in stimulating economic activity, creating business opportunities, and strengthening the competitiveness of local enterprises.
Airlangga encouraged the market to provide greater opportunities for promising local MSME products rather than relying excessively on imported, high-end fashion brands.
“What sells in the market should be products based on MSMEs—not, so to speak, imported high-fashion brands, but genuinely local products. We can learn from Bali. Thank you,” he said.
Strengthening economic fundamentals, improving access to financing, and expanding market opportunities for local MSME products are among the measures being emphasized to help Indonesia maintain economic resilience amid external pressures.
