Economist: US Dollar Appreciation Benefits Commodity-Exporting Regions

Samarinda - Economist Jusuf Kuleh from Mulawarman University (Unmul) in Samarinda, East Kalimantan, said the US dollar’s strengthening to Rp17,814 per dollar on Friday morning could benefit commodity-exporting regions. ‘The rise in the US dollar exchange rate against the rupiah is a boon for regions based on commodity exports, such as East Kalimantan Province (Kaltim), which exports coal, crude oil, liquefied natural gas (LNG), and palm oil, as payments are made in US dollars,’ said Kuleh in Samarinda on Friday. According to Kuleh, for mining and plantation giants in Kaltim, the current situation is a windfall that instantly doubles their profits, which could indirectly boost regional revenue (PAD) through profit-sharing funds. However, the rise in the US dollar exchange rate against the rupiah also leads to higher import prices and inflation. This includes increased logistics and transport costs, which automatically raise food prices in traditional markets across Samarinda, Balikpapan, and Penajam Paser Utara in Kaltim. Moreover, Kaltim is not a major food-producing region, so most staple goods and consumer supplies must be imported from Java and Sulawesi. Additionally, the massive National Capital City (IKN) project currently underway in Kaltim is also at risk of being affected by the US dollar’s rise. Jusuf Kuleh hopes Bank Indonesia continues to intervene in the currency market, including the spot market, to curb the rupiah’s depreciation and prevent it from breaking new psychological barriers. At the provincial level, the East Kalimantan government is also urged to act swiftly to leverage the export revenue surge to strengthen social safety nets for vulnerable communities. ‘A critical rupiah is a true test of our economic resilience. If missteps are made in mitigating risks, the figures of Rp17,900 on Thursday and Rp17,800 on Friday are not just temporary records but the gateway to an economic crisis, which must be anticipated,’ Kuleh said.