The Rupiah's Condition Differs from the 1998 Crisis, Chatib Basri Stresses the Importance of Fiscal Credibility

Former Finance Minister Chatib Basri highlighted the rupiah's weakening, triggered by issues of confidence in Indonesia's fiscal condition. 'Our problem is about confidence in the fiscal side,' he said in Jakarta on Tuesday (6/9/2026). Analysis using the Credit Default Swap (CDS) indicator shows that 23 percent of the variation in the rupiah's weakening is explained by CDS movements, while changes in the rupiah only explain 2.3 percent of CDS movements. The rise in CDS risk has been visible since January 2026, before the escalation of global conflicts. Chatib added that Moody's outlook change and market concerns over the budget deficit approaching three percent have also affected investor sentiment. This situation is expected to impact corporate growth rates in the second half of 2026. https://www.urbanjabar.com/news/9217231898/kondisi-rupiah-berbeda-dengan-krisis-1998-chatib-basri-tekankan-pentingnya-kredibilitas-fiskal