POSTINGNEWS.ID --- It is undeniable that the ongoing impact of the recent surge in demonstrations will impact the Indonesian economy. Observers say there are three things that will be directly affected.
As previously reported, Bank Indonesia (BI) has stated its readiness to take steps to maintain the stability of the rupiah exchange rate amidst pressure from the recent large-scale demonstrations in Jakarta.
BI's decision to ensure sufficient rupiah liquidity is the right step to ensure that the rupiah's exchange rate movements align with national economic fundamentals.
This was stated by Erwin Gunawan Hutapea from the BI Monetary and Securities Asset Management Department (DPMA), who emphasized that BI actively intervenes through various instruments, both in the domestic and offshore markets, such as non-deliverable forwards (NDFs), domestic non-deliverable forwards (DNDFs), spot transactions, and the purchase of Government Securities (SBN) in the secondary market.
"Bank Indonesia regulates the rupiah exchange rate to ensure that it reflects fundamental economic values through sustainable market mechanisms," Erwin said on Tuesday, September 2, 2025, as quoted by Disway.id.
Although the rupiah strengthened slightly at the start of trading on Monday to Rp16,472 per US dollar compared to Friday's close of Rp16,500, the previous weakening, which reached Rp16,354 per US dollar on Friday, August 29, 2025, cannot be ignored.
Rully Arya Wisnubroto of Mirae Asset believes that the weakening is influenced not only by global factors but also by pressure from the demonstrations in Jakarta.
Coordinating Minister for Economic Affairs, Airlangga Hartarto, claimed that Indonesia's economic fundamentals remain solid, with positive economic growth.
However, Nailul Huda of CELIOS warned that the current socio-economic conditions could become a time bomb that will explode if the government does not immediately address public concerns.
According to Nailul, political turmoil and demonstrations have the potential to lower the Jakarta Composite Index (JCI) and generate negative investor sentiment, which could put pressure on the Indonesian capital market.
Furthermore, he believes that political instability has the potential to create economic instability, leading to three things: a decline in the JCI, holding back foreign and retail investors, and increasing the risk of capital outflow.
Indonesia's financial markets are currently vulnerable to the impact of continued demonstrations, which will not only put pressure on the rupiah exchange rate but also on the JCI and the overall business climate.
Preventive measures and synergy between relevant parties are needed to maintain Indonesia's economic stability amidst the uncertain conditions caused by the ongoing turmoil.
This article was originally published on Disway.id with the title: Economist Says Large Demonstrations Threaten Rupiah and IHSG, a Socio-Economic Time Bomb