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View all search resultsStabilizing the rupiah at Rp 18,000 requires Indonesia to look past trailing GDP growth and actively rebuild market confidence by enforcing strict resource export repatriation, maintaining clean fiscal governance and speaking to global capital with a single, clear technocratic voice.
Replacing officials to save a falling rupiah is empty political theater; Indonesia’s true economic safety depends on fixing deep-seated structural issues like oil deficits, agricultural productivity and policy execution.
Rather than attempt to downplay the rupiah's slide through well-meaning but ultimately misleading political statements that inevitably dismiss the plight of rural communities, realpolitik based on honesty backed by data is the best policy approach.
The rupiah's persistent depreciation is a structural consequence of over-reliance on volatile capital inflows to finance a chronic current account deficit, persistent saving–investment imbalances, lasting fiscal deficit and a narrow, commodity-dependent export base.
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