JAKARTA – Indonesia’s parliament has summoned the central bank governor as the rupiah weakens sharply, hitting its lowest level of 17,648 per US dollar, intensifying concerns over economic stability.

Data from Bloomberg shows the currency’s continued decline, prompting Commission XI of the House of Representatives (DPR) to call in Bank Indonesia Governor Perry Warjiyo for a high-level hearing in Jakarta.

The meeting, held at the DPR complex, is a continuation of last week’s session, which was postponed before lawmakers could begin a full question-and-answer discussion. The session is chaired by Commission XI leadership, with key officials from Bank Indonesia in attendance.

While the official agenda includes a review of the central bank’s recent policy measures, lawmakers are expected to focus heavily on the rupiah’s depreciation. Concerns have been raised over the effectiveness of current interventions, including foreign exchange market operations.

Bank Indonesia has previously pointed to global factors as the main driver of the currency’s weakness. These include shifting investor sentiment, geopolitical tensions, and a stronger US dollar, which has drawn capital away from emerging markets like Indonesia.

Domestic factors are also under scrutiny. Seasonal demand for foreign currency during the Hajj pilgrimage has contributed to higher exchange activity, while corporate dividend repatriation has increased demand for US dollars.

Lawmakers are pushing for concrete policy responses, including the possibility of raising interest rates to stabilize the currency. However, economists warn that such measures must be balanced carefully to avoid slowing economic growth.

The weakening rupiah has broader implications for the economy, particularly through rising import costs and inflation risks. Higher prices for goods could erode purchasing power and affect small businesses and household consumption.

Parliament has also signaled that Finance Minister Sri Mulyani Indrawati may be called to address fiscal measures aimed at maintaining price stability and supporting economic resilience.

As the hearing unfolds, markets are closely watching for signals from Bank Indonesia on how it plans to navigate mounting pressures and restore confidence in the rupiah.