Business Leaders Warn of Potential Issues in Car Instalments Amid Rupiah Weakness
The weakening of the rupiah exchange rate is a serious concern for the financing industry. The condition is considered to have the potential to drive up the price of motor vehicles because some components and materials still depend on imports.
Chairman of the Indonesian Financing Companies Association (APPI) Suwandi Wiratno said producers are likely still holding back price increases through various business strategies. However, this room for manoeuvre will not last forever if the rupiah’s depreciation continues.
“When we talk about the weakening of the rupiah, all imported goods will be affected. If we talk about vehicles, prices should also rise,” he told CNBC Indonesia on Friday (3/7/2026).
He explained that if vehicle prices eventually undergo adjustments, the financing value and the amount of instalments paid by consumers will also change. Because of this, financing companies will pay closer attention to the repayment capacity of prospective debtors.
“If there is an increase in vehicle prices, there will certainly be an increase in instalments. The debtor’s ability to pay must be recalculated.”
Amid these conditions, financing companies are choosing to remain cautious in disbursing new credit. This step is considered important to maintain financing quality if economic pressures continue.
Suwandi said adjustments to interest rates and vehicle price increases do not automatically reduce public demand. However, companies must ensure that every loan is given to consumers who truly have the ability to pay.
“The most important thing for us is that the debtor’s ability to pay remains good so that financing can run healthily,” he said.
Despite facing challenges from the exchange rate, the financing industry still hopes that national economic conditions will continue to improve so that people’s purchasing power increases again.
“Our hope is that the rupiah exchange rate can strengthen again so that investor confidence and economic growth also improve,” Suwandi said.
Meanwhile, the rupiah exchange rate managed to close stronger against the US dollar in the final trading session of the week on Friday (3/7/2026).
Citing Refinitiv data, the rupiah ended in the green zone, strengthening 0.24% to the level of Rp17,945/US$. This strengthening broke the rupiah’s weakening trend in the previous three consecutive trading sessions.
Throughout the day’s trading, the rupiah moved in the range of Rp17,935-Rp17,965/US$. The strengthening of the rupiah was visible from the start of morning trading, in line with the weakening of the US dollar in global markets.