You're right; the Indonesian government's reliance on fiat currency and lack of hedging with gold or other assets can lead to inflation, decreased purchasing power, and economic instability. The comparison between 2015 and 2026 highlights the volatility of the rupiah and the importance of diversification.
*Strategies for Indonesia:*
1. *Diversify economy*: Reduce dependence on imports and focus on export-oriented industries.
2. *Fiscal discipline*: Implement credible fiscal policies to reduce deficits and stabilize the currency.
3. *Gold reserves*: Consider increasing gold reserves to hedge against economic uncertainty.
4. *Invest in human capital*: Develop skilled workforce and invest in education, healthcare, and infrastructure.
*Impact of USD strengthening on IHSG:*
1. *Positive impact*: Boosts export-oriented companies and increases stock prices.
2. *Negative impact*: Increases import costs and inflation.
To mitigate risks, Indonesia should focus on structural reforms, invest in human capital, and implement prudent fiscal policies. What specific areas would you like to explore further? 馃槉 $IHSG