Banggar DPR: Open to Criticism and Suggestions to Overcome the High Dollar

JAKARTA - The DPR RI Budget Agency asks all parties to be open to criticism and input in overcoming the high cost of the US dollar and the yield of Government Securities (SBN) and the Composite Stock Price Index (IHSG) which have declined.

"This is a reflection for ourselves," said the Head of the Banggar DPR RI Said Abdullah in a statement received in Jakarta, Wednesday.

He said that currently Indonesia is facing serious pressure on the rupiah exchange rate against the US dollar and the yield of SBN. On the exchange floor, the JCI also showed a declining graph.

According to Said, Indonesia does not need to point fingers at external sentiments, such as questioning the reasons why the US Central Bank, The Fed, chose a hawkish policy and the Gulf War that continues to be turbulent, because it is beyond control.

Thus, said Said, which must be prepared more planned with good execution, namely overcoming the high cost of the US dollar, the high yield of SBN, and the decline in the JCI.

In addressing this, Said recommended that the government needs to restore the confidence of business actors, with three steps, namely first, maintaining policy consistency.

He argues that policy uncertainty is a major risk for business actors. For this reason, the government should not announce policies that are still premature and should build a productive multi-stakeholder dialogue on policy plans.

Then, second, managing a healthy fiscal policy. The DPR appreciates the government's proposal to submit a deficit in the State Budget Draft (RAPBN) 2027 in the range of 1.8 percent to 2.4 percent of Gross Domestic Product (GDP).

"This is good news. Hopefully it will be more convincing for the market," he said.

Moreover, he continued, if this year the realization of the deficit can be lower, at least in the range of 2.58 percent, from the 2026 state budget target of 2.68 percent and the 2025 realization which reached 2.81 percent, so it can show a positive trend.

In addition, market players also expect reforms to the governance of various priority programs, such as Free Nutritious Meals (MBG) and Red and White Village/Village Cooperative (KDMP).

Said suggested that the government could at least improve the capacity of implementers, avoid conflicts of interest, build a supply chain ecosystem, and focus more on target targets and priority areas.

Third, he revealed that on the exchange floor, the Banggar DPR encouraged the Financial Services Authority (OJK) to continue to improve exchange governance, improve the aspect of transparency of share ownership, increase the portion of public shares alias free float above 15 percent, and continue to evaluate and improve the organization of independent regulators (SRO) in the capital market.