JAKARTA, KOMPAS.com - A weakening rupiah does not always have a\nnegative impact.<\/p>\n
For export sectors, a weaker rupiah can actually boost profits for\nexporters, especially those using domestic raw materials and selling\nproducts internationally in US dollars.<\/p>\n
Senior economist at the Institute for Development of Economics and\nFinance (INDEF), Tauhid Ahmad, explained that the benefits of a weaker\nrupiah are mainly felt by export sectors whose raw materials are\npredominantly domestic.<\/p>\n
\u201cExport products that rely mainly on domestic raw materials will\nbenefit when the rupiah weakens,\u201d Tauhid told KOMPAS.com on Wednesday,\n27 May 2026.<\/p>\n
\u201cBecause production costs are in rupiah, while sales are priced in\ninternational markets,\u201d he said.<\/p>\n
He cited commodities such as coal and crude palm oil (CPO), where\nmost of the production chain remains domestic.<\/p>\n
\u201cFor example, coal or CPO exports. Most production costs are\ndomestic. When international prices rise and the rupiah weakens, they\ncan secure significant gains,\u201d he added.<\/p>\n
However, Tauhid stressed that the situation differs for export\nindustries reliant on imported raw materials.<\/p>\n
According to him, the benefits of a weaker rupiah are limited as\nhigher import costs increase production expenses.<\/p>\n
He cited the electronics, machinery, and metal-based industries which\ndepend heavily on imported raw materials like iron and steel.<\/p>\n
\u201cFor instance, electronics or machinery products, most components are\nimported. So when the rupiah weakens, production costs also rise,\u201d he\ncontinued.<\/p>\n
Beyond boosting margins for certain sectors, a weaker rupiah is also\nseen as strengthening Indonesia\u2019s competitiveness in global markets.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/does-a-weakening-rupiah-boost-exports-heres-the-explanation-1779890331", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }