Jakarta, CNBC Indonesia - The rupiah has once again recorded its\nall-time lowest weakening, breaching the Rp17,500 per US dollar level\nduring trading on Tuesday (12\/5\/2026). Several national banks have even\nstarted selling US dollars in the range of Rp17,500 to nearly\nRp17,700.<\/p>\n
The exchange rate pressure is beginning to impact the national\nproperty industry. Property developers admit that the surge in the US\ndollar, fuel price increases, and global wars are making house\nconstruction costs increasingly expensive.<\/p>\n
\u201cAt the time when the West Java Governor\u2019s policy on mining was\nhalted, we faced an increase of Rp4 million per house. Now, the impact\nfrom the war and fuel, the average increase in building materials is\n15%,\u201d said the Secretary General of the All-Indonesia Housing and\nSettlement Developers Association (APERSI), Deddy Indrasetiawan, to CNBC\nIndonesia on Tuesday (12\/5\/2026).<\/p>\n
This cost pressure is directly felt in the construction of subsidised\n35\/60-type houses, which have long been one of the main markets for\nregional developers. The rise in construction costs is putting project\nmargins under increasing strain.<\/p>\n
Amid the surge in material prices, developers are also facing changes\nin payment patterns from building material suppliers. Several suppliers\nnow require upfront payments before goods are delivered, particularly\nfor more contested materials.<\/p>\n
\u201cMaterial increases. On top of that, some materials must be paid\nupfront before they are sent. Natural materials definitely upfront now.\nBecause of the scramble,\u201d said Deddy.<\/p>\n
Several building materials that are starting to experience price\npressure include furniture and ceramics. The rupiah\u2019s weakening is also\nsaid to make the cost of certain materials heavier due to their links to\nimports.<\/p>\n
Although construction costs are soaring, the residential property\nmarket has not shown significant recovery. House sales remain stagnant\ncompared to last year because consumer purchasing power has not fully\nrecovered.<\/p>\n
\u201cSales are almost the same as last year, no significant increase,\u201d\nsaid Deddy.<\/p>\n
He also assessed that the impact of the rupiah\u2019s weakening is hard to\nseparate from the fuel price increase effect because they are happening\nsimultaneously. Both factors are also driving up construction costs.<\/p>\n
\u201cThis can\u2019t be separated by us because it\u2019s together with the fuel\nprice increase,\u201d he said.<\/p>\n
As a note, citing Refinitiv data, today, Tuesday (12\/5\/2026), the\nGaruda currency closed 0.49% weaker at Rp17,490\/US$. This position also\nmarks the weakest closing level for the rupiah in recent history.<\/p>\n
Throughout trading, the rupiah\u2019s weakening deepened at times,\nbreaching the psychological level of Rp17,500\/US.T<\/em>h<\/em>e<\/em>r<\/em>u<\/em>p<\/em>i<\/em>a<\/em>h<\/em>e<\/em>v<\/em>e<\/em>n<\/em>t<\/em>o<\/em>u<\/em>c<\/em>h<\/em>e<\/em>d<\/em>i<\/em>t<\/em>s<\/em>w<\/em>e<\/em>a<\/em>k<\/em>e<\/em>s<\/em>t<\/em>i<\/em>n<\/em>t<\/em>r<\/em>a<\/em>d<\/em>a<\/em>y<\/em>l<\/em>e<\/em>v<\/em>e<\/em>l<\/em>a<\/em>t<\/em>R<\/em>p<\/em>17,\u2006525\/U<\/em>S<\/em><\/span>.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/weak-rupiah-makes-everything-expensive-after-rp4-million-increase-house-prices-rising-again-1778583193", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }