APPBI DKI Jakarta: Weakening Rupiah Could Make Consumers More Selective in Spending

Jakarta (ANTARA) - The Indonesian Shopping Centre Management Association (APPBI) DPD DKI Jakarta assesses that the weakening of the rupiah exchange rate against the US dollar could potentially make consumers more selective in their spending as they reconsider their outlays. “If conditions do not change and remain as they are now, purchasing power will certainly be affected. Consumers will be more selective in buying goods that are truly needed or daily necessities,” said APPBI DPD DKI Jakarta Chairman Mualim Wijoyo when contacted in Jakarta on Monday. According to him, the rupiah’s depreciation not only affects international trade but also impacts goods prices, living costs, and public investment decisions. From an operational perspective, Mualim said a number of shopping centre tenants are also potentially affected because they still use raw materials or components sourced from imports. “Operationally, it certainly has an effect, especially for certain needs that still must be imported. However, shopping centres and tenants usually already have prior planning and agreements,” he stated. Nevertheless, APPBI has not yet observed a significant increase in product prices at shopping centres to date, as tenants remain cautious in setting selling prices. “So far, a significant product price increase has not been felt because mall tenants are very careful in determining prices. However, going forward there is certainly potential for increases, but we do not yet have data regarding the magnitude,” said Mualim. There are 100 shopping centres in Jakarta affiliated under the Indonesian Shopping Centre Management Association (APPBI) DKI Jakarta. The rupiah exchange rate at the close of trading on Thursday (11/6) afternoon weakened by 45 points, or 0.25 percent, to Rp17,989 per US dollar from the previous Rp17,944 per US dollar. Bank Woori Saudara analyst Rully Nova said the rupiah’s depreciation was caused by the escalating conflict between the US-Zionist Israel and Iran.