The negative impact of the weakening Rupiah is beginning to be felt\nby import entrepreneurs. The General Chairman of the Indonesian National\nImporters Association (GINSI), Subandi, stated that businesses are\nstarting to take several steps due to the US Dollar exchange rate, which\nhas now touched Rp 18,000.<\/p>\n
One measure being taken by entrepreneurs amidst the increasing cost\nburden is the efficiency of employee working hours. \u201cSome industries,\nparticularly those that are members of GINSI, have begun reducing work\nrhythms; what was previously three shifts is now down to two shifts,\u201d\nsaid Subandi when contacted on Saturday, 6 June 2026.<\/p>\n
Entrepreneurs are also increasingly anxious as the Rupiah approaches\nthe psychological level of 19,000 per US Dollar, which exceeds the\noperational threshold for the business world. This concern arises\nbecause the currency was in the range of 16,000 per US Dollar at the\nbeginning of the year. As of the close of trading on Friday, 5 May 2026,\nthe Rupiah approached a record low of 18,030 per US Dollar.<\/p>\n
Subandi stated that importers actually set a safe Rupiah limit\nbetween 15,500 and 15,800 per US Dollar, a rate last recorded in 2024.\nAccording to him, importers have calculated that the maximum tolerable\npsychological limit is 19,000 per US Dollar.<\/p>\n
\u201cIf it touches 19,000 and above, business players have informed us\nthat they will struggle to continue production or bring goods in from\nabroad,\u201d Subandi added.<\/p>\n
An increase to 19,000 per US Dollar represents an approximately 20\nper cent increase from the safe limit expected by entrepreneurs, meaning\nimport capital costs will rise significantly. Subandi provided an\nexample using the exchange rate from two years ago: with a capital of Rp\n100 billion, an entrepreneur could obtain, for instance, 1,000 units of\ngoods. If the Rupiah falls to the 19,000 level, the entrepreneur would\nhave to pay Rp 120 billion for the same volume of goods. In addition to\ncapital expenditure, taxes to be paid will also increase because taxes\nare collected based on transaction invoices.<\/p>\n
Furthermore, there is an increase in logistics costs and other\nshipping expenses, resulting in an increase in the cost of goods sold\nfor imports. In this condition, Subandi said, entrepreneurs have no\nchoice but to raise product selling prices. This is a difficult option\namidst currently weak consumer purchasing power.<\/p>\n
If imports and production decrease, efficiency becomes the path to be\ntaken, starting from the reduction of employee working hours and\ntemporary housing, to potential layoffs (PHK).<\/p>\n
Meanwhile, Bank Indonesia and the government are continuing their\nefforts to maintain the stability of the Rupiah. Bank Indonesia Governor\nPerry Warjiyo and Finance Minister Purbaya Yudhi Sadewa have ensured\nthat the coordination of fiscal and monetary policies remains tight\namidst the Rupiah\u2019s weakness. Perry stated that both institutions are\nworking to maintain stability and encourage economic growth.<\/p>\n
\u201cThe strengthening of fiscal and monetary coordination is something\nwe continue to do, and currently, the focus is on how fiscal and\nmonetary policies can be in sync, supporting and strengthening each\nother through their respective capacities to bolster joint efforts in\nstabilising the Rupiah exchange rate,\u201d Perry said during a press\nconference at the House of Representatives Building, Jakarta, on\nSaturday, 6 June 2026.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/impact-of-weakening-rupiah-on-importers-efficiency-in-working-hours-1780799445", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }