To be fair, the rupiah’s slide is not entirely the fault of the government or Bank Indonesia (BI). Authorities managed to keep the currency away from the Rp 17,000 line earlier this year, but that stability unraveled once global oil prices surged following the outbreak of the United States-Israeli war on Iran. For Indonesia, a net oil importer, higher crude prices represent a direct hit to the currency.

While both sides have agreed to a two-week ceasefire, the calm looks more like a pause than a resolution. The deal remains fragile, and the geopolitical calculus can shift overnight, especially as Israel continues to bomb South Lebanon, the base of Iran’s proxy, Hezbollah.

With that uncertainty hanging over markets, the rupiah’s weakness above 17,000 may not be a brief overshoot, but a "new normal" and a potential prelude to an even deeper fall.

In order to prevent that, fiscal and monetary authorities need to provide reassurance that currency stability is the top priority right now.

On the monetary side, despite questions about its independence following the appointment of President Prabowo Subianto’s nephew as one of BI’s deputy governors, the central bank has played its part.

Following BI’s two-day monthly policy meeting, Governor Perry Warjiyo said the central bank was no longer signaling the possibility of an interest rate cut and is likely to keep the BI Rate unchanged to safeguard foreign exchange reserves.