Mukhamad Misbakhun

Indonesia’s Dominant Role in Global Supply Chains

The argument for Indonesia’s economic invulnerability rests largely on its command over essential global commodities. During a forum in Yogyakarta, Misbakhun argued that the nation’s strategic position in the international supply chain provides a natural hedge against fiscal collapse. According to tandaseru.id, the nation’s vast natural resources serve as a defensive fortress for its economy. Misbakhun provided specific data to illustrate this dominance, noting that Indonesia is responsible for 43% of the world’s coal supply. The country also controls 40% of the global market for Crude Palm Oil (CPO) and maintains a commanding lead in nickel, supplying more than 60% of global demand. Beyond these heavyweights, the economy is supported by a diverse portfolio of strategic commodities, including rubber, coffee, and various marine resources.

“If anyone says our state budget is bankrupt, it is impossible for us to be bankrupt. Imagine, Indonesia supplies 43% of the world’s coal. CPO 40%, nickel even exceeds 60%,”

Misbakhun, Chairman of Commission XI DPR, via news.google.com

The Rupiah at 17,600: Comparing Current Volatility to 1998

The discussion comes at a moment of heightened currency tension, as the Rupiah has recently breached the Rp17,600 mark against the US Dollar. While such a drop often triggers fears of a systemic crisis, Misbakhun drew a sharp distinction between the current environment and the 1998 monetary crisis. As CNN Indonesia reported, the 1998 crisis was characterized by an economic bubble and widespread overheating. During that period, many private entities and banks failed to implement necessary hedging for foreign currency loans, leading to widespread defaults when the currency plummeted. In contrast, Misbakhun noted that despite the current pressure on the Rupiah, there have been no reports of banks or private institutions announcing defaults. While he acknowledged that certain sectors might experience windfalls from exchange rate fluctuations—a phenomenon also seen in 1998—the current impact is not spreading across the broader economy.

• 1998 Crisis Drivers: Economic bubbles, overheating, and lack of foreign currency hedging.
• 2026 Currency Status: Rupiah at Rp17,600 with no reported banking defaults.
• Current Economic Outlook: High fundamental strength despite currency volatility.

Addressing Managerial Risks Over Resource Scarcity

For Misbakhun, the primary threats to Indonesia’s stability are not found in a lack of assets, but in the technical execution of fiscal and monetary policy. He characterized the nation’s challenges as operational rather than existential. He identified several key areas that require strategic management:

• Optimizing state revenue through more effective tax collection.
• Managing the stability of the exchange rate.
• Implementing strategic monetary policies to mitigate volatility.

This focus on management is set against a backdrop of relatively strong macro-indicators. news.google.com highlighted that Indonesia remains a G20 member with economic growth staying above 5%. Furthermore, the nation has maintained a positive trade balance for 71 consecutive months. Misbakhun warned that much of the current anxiety regarding economic collapse is driven by external factors rather than domestic reality. Misbakhun, Chairman of Commission XI DPR, via news.google.com Ultimately, the legislative view is that while the Rupiah’s movement requires close monitoring, the sheer scale of Indonesia’s commodity exports provides a structural floor that makes a total economic collapse highly improbable.