Depok.  Rupiah depreciation to its lowest level is testing Indonesia’s policy framework, with former Bank Indonesia governor Soedradjad Djiwandono on Tuesday warning policymakers to stay grounded in past lessons.

Based on Tuesday’s afternoon trading data, the rupiah weakened by 30 points, or 0.17%, to Rp 17,424 per US dollar, from the previous close of Rp 17,394.

When asked by The Jakarta Globe what policy coordination shift he would prioritize to ensure growth remains strong and inclusive amid limited fiscal space, rupiah weakness, and global energy volatility, Djiwandono replied: “Learn from the past, both good and bad, otherwise you may find the wrong pattern and lose.”

He stressed that policymakers should not abandon historical lessons even as challenges evolve.

“But the challenges today are not always the same,” he said during a public lecture at the University of Indonesia, noting that policies must be adapted to new risks, instruments, and technological changes.

Djiwandono likened policymaking to a tennis match, underscoring the need for constant readiness.

“You cannot be sleepy when you play tennis. You have to stay steady but be ready, whether the ball comes to your right, your left, or above you,  you must be prepared to respond,” he said.

He also warned against complacency in navigating current conditions.

“Don’t say ‘this time is different’ as a justification when you are not prepared,” he said.

The discussion, themed on aligning monetary and fiscal policies to support sustainable economic growth with improved distribution, comes as Indonesia faces external pressures ranging from geopolitical tensions to volatile oil prices and currency depreciation.

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