Dollar Breaches Rp17,500, Businessman Reveals Unexpected Fact
Jakarta, CNBC Indonesia - Vice Chairman of the Livestock Sector of the Indonesian Chamber of Commerce and Industry (Kadin), Cecep M. Wahyudi, acknowledges that the rupiah’s exchange rate against the US dollar breaching the Rp17,500 level has become a serious concern for business circles.
However, amid this exchange rate pressure, he sees that the lower-middle economic group remains relatively safe.
“Yes, regarding the dollar price that has broken above Rp17,000, this is certainly a homework and concern for us, especially the businessmen in Kadin. But the most important thing is that the real economy in the field can move. That’s the most important,” Cecep said when met at the Ministry of Agriculture office in Jakarta on Tuesday (12/5/2026).
According to him, in theory, the rupiah’s weakening to that level should have already caused heavy economic pressure, such as a recession. However, the conditions on the ground are still moving.
“It should be with that number, there would already be a recession. But we, Alhamdulillah, are still going. That means it’s one proof of the success of the programmes run by Mr (President) Prabowo Subianto, regarding the development of the people’s economy,” he stated.
Cecep said that the maintained economic growth shows that public consumption is still running. He assesses that this is reflected in household shopping activities as well as government expenditure.
“Regarding economic growth, this proves an increase or growth in all sectors. Both investment, consumption growth, and so on. Because one of the main factors of economic growth is public consumption,” he explained.
“With evidence of high growth of 5.61%, it proves the increasing public consumption. Public consumption, whether it’s consumption done by shopping by the state, or consumption or shopping done by households themselves,” Cecep continued.
Amid the high dollar pressure, according to him, the middle and lower class society group is actually seen as still holding up.
“In fact, if I look, the middle and lower economic groups are safe. The upper ones seem less safe, because they are affected by that dollar price,” he said.
Cecep assesses that the Free Nutritious Meals (MBG) programme is one of the important supports for the purchasing power of the lower society.
“Insyaallah safe, especially if we all guard it regarding this MBG programme, because it seems like the only programme that can bring the economy safe, especially for middle and lower middle is this programme. In fact, we see it like that,” he said.
Nevertheless, he acknowledges that there are starting to be adjustments in people’s shopping patterns, especially for tertiary needs. Meanwhile, primary and secondary consumption is still considered quite stable.
“If we look at the growth in vehicle sales, it’s still increasing. Housing is also still quite significant, not significant, quite growing,” he mentioned.
“Well, perhaps the shopping that is tertiary in nature, they seem to be holding back. But for primary, secondary needs, it looks still quite good until today,” Cecep concluded.
As known, the rupiah exchange rate started trading this morning at a historic weakening level by reaching Rp17,500/US$.
Referring to Refinitiv data, the Garuda currency weakened to Rp17,500/US$ at 9:15 WIB. Where at the opening, the Rupiah opened in the red zone with a weakening of 0.43% to Rp17,480/US$. The DXY at opening was also seen strengthening 0.21% to 98.115.