State of the Indonesian economy.

[harryopal1]

Evidently the Indonesian rupiah has reached an historically all time low against the US dollar. Prabowo's response in May to the decline of the IDR is looking very thin. "No matter how many thousands the dollar reaches, people in villages don't use dollars. The ones worried are those who frequently travel abroad,"

While government is trying to contain inflation that becomes increasingly difficult as the Rupiah continues to slide. An interesting although ominous article with the Aus ABC website today.

Inside this street food market are signs of a crashing currency

Indonesia's rupiah has fallen to historic lows against the US dollar, causing damage "in most of the economy", analysts say.

www.abc.net.au

 

[centurion]

Evidently the Indonesian rupiah has reached an historically all time low against the US dollar. Prabowo's response in May to the decline of the IDR is looking very thin. "No matter how many thousands the dollar reaches, people in villages don't use dollars. The ones worried are those who frequently travel abroad,"

While government is trying to contain inflation that becomes increasingly difficult as the Rupiah continues to slide. An interesting although ominous article with the Aus ABC website today.

Inside this street food market are signs of a crashing currency

Indonesia's rupiah has fallen to historic lows against the US dollar, causing damage "in most of the economy", analysts say.

www.abc.net.au

The state of the country's economy is excellent, you did not get yet the memo.

 

[harryopal1]

So which is the fake news? "The Indonesian economy is in great shape." or "The Indonesian economy is in dire straits"

 

[pantaiema]

I just posted the Indonesian Graduate unemployment Rate

Middle Class Under Pressure

The official Statistics of the Indonesian Government (BPS) defines Middle Class (e.g Middle income spender) as people who spend Rp 2.04m+ (e.g USD125). :D:D:D:D So how do you define people, diaspora living in Indonesia who spend USD1,000,000 to purchase property in Indonesia as discussed in this...

www.expatindo.org

About this statement
"No matter how many thousands the dollar reaches, people in villages don't use dollars. The ones worried are those who frequently travel abroad,"
He said this in front of the press more than a month ago.

 

[pantaiema]

So which is the fake news? "The Indonesian economy is in great shape." or "The Indonesian economy is in dire straits"

This is what currently shared in social media.
Based on self-assessment exercise, the two years of this government score card is still ok.

Economic Stability Score Card: Inflation is under control, Economy growth is maintained.

 

[harryopal1]

View attachment 5737

This is what currently shared in social media.
Based on self-assessment exercise, the two years of this government score card is still ok.

Economic Stability Score Card: Inflation is under control, Economy growth is maintained.

And independent assessments?

 

[Balifrog]

It is not up on us to judge....
Remember we're just immigrants !

I like Bali for retirement. Enjoying the slow pace of daily life.
Am I in love with the place ? Nope
Would I have lived here when I was 30 or 45 ? Nope.

 

[centurion]

Am I in love with the place ? Nope
Would I have lived here when I was 30 or 45 ? Nope.

Why? Curious to know.

 

[snpark]

It is not up on us to judge....
Remember we're just immigrants !

I like Bali for retirement. Enjoying the slow pace of daily life.
Am I in love with the place ? Nope
Would I have lived here when I was 30 or 45 ? Nope.

Not even with a fat US salary?
Let's say example $10k a month at 30, Indonesia would be bearable then, compared to Europe or even USA, yeh it's cost of living etc but you can put up with it then.

 

[Balifrog]

Why? Curious to know.

Would have been too boring for me at that age !

 

[Balifrog]

Not even with a fat US salary?
Let's say example $10k a month at 30, Indonesia would be bearable then, compared to Europe or even USA, yeh it's cost of living etc but you can put up with it then.

Still would prefer Bangkok, HCMC, Hong Kong, Singapore.

More "action" at night

10k is what I made as "consultant" in HKG. + a nice seaview appartment. But cost of life is rather expensive.

 

[pantaiema]

And independent assessments?

Forget about independent assessment.
This is what the Indonesian President said in Davos WEF 2026.

There Is No Official You Can Buy in Indonesia: President Prabowo’s Warning to Oligarchs

Apart from the headlines (e.g bribery); This is what he said about Indonesian economy in front of the audience of WEF and International press

• Indonesia economic growth is strong amid challenging global conditions, financial tightening, trade tensions, and political uncertainty 01:47
• Indonesia’s economy grew by over 5% annually over the last decade, and he expressed confidence that current and future growth will be even higher and "significantly surprising to many in the world 02:04, 06:04
• Inflation remains stable at 2%, and the government deficit is capped below 3% of GDP 02:28

Just one example It’s dead easy to report a low 2% inflation rate in Indonesia. Fill the consumer basket for inflation calculation with heavily subsidised goods like subsidised fuel, nine basic staple food in Indonesia (e.g sembako)

But if you actually look at everyday essentials like soybeans (main ingredient for tofu and tempeh), flour, meat, or non-subsidized fuel, the prices tell a different story. If you were to factor in things like consumer electronics, cars, or even electric bikes which are a necessity, not a luxury, for many families financing them on credit the real rate of inflation would be far higher

BPS in Indonesia is a national agency, like in other countries, theoretically it functions with a high degree of operational and methodological independence.

“There are three kinds of lies: lies, damned lies, and statistics” was popularised in19th-century by Mark Twain