Vice President Gibran Meets Parliamentary Leaders to Formalize Resignation as Rupiah Slides to Rp 18,209

JAKARTA, Investortrust.id — Indonesian Vice President Gibran Rakabuming Raka arrived at the parliamentary complex in Senayan on Thursday morning to meet leaders of the People's Consultative Assembly (MPR), moving to formalize his resignation a day after senior ally Budi Arie Setiadi confirmed the decision and sending ripples through domestic financial markets.

Wearing a black suit and a red tie, Gibran entered the Nusantara III building at approximately 11:00 a.m. local time under tight security, offering only a brief smile to waiting journalists. His arrival at the legislature followed a 20-minute closed-door meeting with President Prabowo Subianto at the Presidential Palace complex earlier that morning, a sequence confirmed by House of Representatives (DPR) Deputy Speaker Sufmi Dasco Ahmad. "We need to convey that it is indeed confirmed at this time that the Vice President is meeting with the President at the Palace," Dasco said at the parliamentary complex. "There is a plan that after meeting with the President at the Palace, the Vice President will head to Senayan to meet with the MPR leadership."

Parliamentary Leaders Standby to Receive Formal Resignation

The high-stakes visit comes as Gibran moves to formally submit his resignation following rulings by the Constitutional Court (MK) and the Supreme Court (MA) regarding his high school diploma—a step already confirmed on Wednesday evening by Budi Arie Setiadi, chairman of the presidential volunteer group Projo. At a separate parliamentary hearing earlier on Thursday, House Commission III Chairman Habiburokhman remarked that Gibran was scheduled to submit his resignation letter at 11:00 a.m., prompting a stir among lawmakers in attendance.

Despite the confirmation from Gibran's political camp, MPR Speaker Ahmad Muzani maintained strict official neutrality ahead of the closed-door session, declining to preempt the formal handover of the letter. "The plan is that Mas Gibran will come to the MPR to convey news. What the news is that he wants to convey, we do not yet know, and we are on standby to receive Mas Gibran so he can meet with us," Muzani said in Senayan. "Now all MPR leaders are on standby. We are waiting for what will be conveyed, what will be spoken; we are waiting too. I cannot speculate."

Observers also noted Gibran's choice of a red tie, matching the attire he wore during the August 15, 2025, MPR Annual Session before he famously swapped it for a light blue tie—the signature color of President Prabowo—ahead of an official photo session with House Speaker Puan Maharani.

Constitutional Succession Procedures

Once Gibran formally vacates the vice presidency, Indonesia’s 1945 Constitution establishes a strict timeline and legislative mechanism to fill the office without disrupting executive governance. Under Article 8, Paragraph 2 of the Constitution, the People's Consultative Assembly must convene a plenary session within 60 days of the vacancy to elect a replacement vice president.

Unlike a general election, the selection is confined exclusively to two candidates nominated directly by President Prabowo Subianto. Lawmakers in the joint assembly—comprising members of both the House of Representatives (DPR) and the Regional Representative Council (DPD)—then vote to choose one of the two presidential nominees to serve out the remainder of the term. Until the MPR formally inaugurates a successor, presidential authority and executive continuity remain fully intact under President Prabowo.

Political Transition Weighs on the Rupiah

The political transition spilled directly into currency markets on Thursday morning, with the Indonesian rupiah opening 0.33% weaker at Rp 18,209 per US dollar. While regional peers such as the Singapore dollar, Thai baht, and Malaysian ringgit also edged lower against a firmer greenback, analysts pointed to a convergence of external shocks and domestic political risk behind the rupiah's slide.

Lukman Leong, an analyst at Doo Financial Futures, noted that hawkish commentary from Federal Reserve officials—some of whom have opened the door to a 50-basis-point interest rate hike in December—combined with a worse-than-expected review from Morgan Stanley Capital International (MSCI) to dampen foreign appetite. "Which, if it triggers renewed foreign selling, could weigh on the rupiah," Leong said, adding that the domestic political transition surrounding Gibran's resignation further clouded capital inflow sentiment.

Officials Urge Investors to Separate Politics from Fundamentals

Seeking to contain market jitters, senior economic policymakers and state investment leaders urged institutional investors to look past short-term political shifts. Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized that sustained economic prosperity depends on insulating macroeconomic management from political cycles. "What is important is that we keep the economy solid," Airlangga said at his office in Jakarta on Wednesday evening. "So, we—the market—must be able to distinguish between what is sentimental and what is fundamental."

Echoing that message, Rosan Roeslani, Chief Executive Officer of Indonesia's sovereign investment agency Badan Pengelola Investasi (BPI) Danantara, asserted that the country's macroeconomic bedrock and state-owned enterprises (BUMN) remain resilient despite global geopolitical and geoeconomic headwinds. Speaking following the launch of Danareksa Investment Management Indonesia in Jakarta on Wednesday, Rosan pointed to earnings across publicly listed companies on the Indonesia Stock Exchange (IDX), particularly in the banking sector, as proof of underlying strength. "That can be reflected in the existing figures, especially from companies that have already gone public and listed with us, whether from our banking sector, our institutional enterprises, and others," Rosan said. "So, we always say that in any situation or condition, there is always a challenge and opportunity."

Rosan added that clean corporate governance and institutional backing from Danantara would continue to anchor investor confidence in Indonesian capital markets. "If people see, 'Oh, this is an institution owned by Danantara,' of course that will add trust value," he said. "Second, from the management side, people who are going to invest will usually look at who the directors are, who is managing it."