Dollar Briefly Breaches Rp17,000, Business Leaders Issue Warning
Jakarta, CNBC Indonesia - The rupiah exchange rate briefly breached the level of Rp17,000 per US dollar, sparking concerns in the business community. Business actors view this situation as a signal for vigilance, as it has the potential to pressure production costs and consumer purchasing power.
Based on data from Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR), the rupiah reference rate on Wednesday, 1 April 2026, was recorded at Rp17,002 per US dollar. Previously, since early March 2026, the rupiah had been moving in the range of Rp16,900 per US dollar, even touching Rp16,990 on 16 March and Rp16,999 on 31 March 2026.
Secretary General of the Indonesian Young Entrepreneurs Association (HIPMI), Anggawira, stated that this rupiah depreciation must be a serious concern for the business world.
“Regarding the dollar rate breaching Rp17,000 per US dollar, the business world certainly sees this as a signal for vigilance. Indeed, there are two sides. For exporters, rupiah weakening can provide benefits because Indonesian products become more competitive in the global market and foreign exchange earnings increase,” Anggawira told CNBC Indonesia on Thursday (2/4/2026).
“However, for the majority of business actors, especially those still dependent on imported raw materials, machinery, components, and dollar-denominated debt, this situation is quite burdensome,” he continued.
Anggawira assessed that the most felt impact is the surge in production costs across various industrial sectors. He said that manufacturing, automotive, electronics, pharmaceuticals, food and beverages, textiles, logistics, and energy industries will face increases in raw material costs and operational expenses.
“Business actors with dollar loans or import payment obligations will also face greater cash flow pressures,” he stated.
If this situation persists, Anggawira warned that the impact could spill over to consumer-level prices.
“What is concerning is that if the dollar continues to rise and remains above Rp17,000 (per US dollar) for a long time, the impact could spill over to consumer-level prices. Imported goods will become more expensive, prices of import-based food items like wheat and soybeans could rise, as well as electronics, automotive, and various household needs. This could suppress consumer purchasing power and ultimately affect business sales as well,” said Anggawira.
He emphasised that the business world does not view this situation solely from the perspective of exporter gains, but rather on the importance of exchange rate stability.
“Therefore, for entrepreneurs, this situation cannot be viewed only from the side of exporters profiting or importers losing. The most important thing is to keep volatility from being too wild. The business world needs a stable exchange rate more than one that fluctuates too much,” he asserted.
To respond to this situation, business actors are beginning to take various adjustment measures, from efficiency to strengthening the use of local raw materials.
“Conducting hedging for import transactions, and reducing dependence on foreign components. This is a momentum to accelerate import substitution and strengthen the domestic industry,” he explained.
On the other hand, Anggawira also urged the government to maintain economic stability through strong policy coordination.
“On the government side, it is important to maintain fiscal and monetary coordination, strengthen foreign exchange reserves, accelerate repatriation of export foreign exchange earnings, and maintain market confidence so that the rupiah is not pressured too deeply. Because if the exchange rate continues to weaken, not only importers will be pressured, but inflation, purchasing power, and the overall investment climate will also be affected,” he said.
Furthermore, he mentioned that the rupiah’s weakening to breach Rp17,000 per US dollar is influenced by various global factors, from geopolitics to US monetary policy.
“The rupiah’s weakening to the level of Rp17,000 (per US dollar) is mainly triggered by global geopolitical sentiment, capital outflows, high dollar demand for imports and debt payments, and the US interest rate policy that remains high,” he concluded.