Exchange Rate Breaches Rp18,000 per US Dollar, Batam Industry on Alert Over Production Costs

The rupiah exchange rate against the US dollar has recorded a new milestone by breaching the psychological level of Rp18,000. Based on reference rate data on Thursday (4/6/2026), the rupiah stood at Rp18,020.65 per US dollar on the selling rate, triggering alarm bells for the business community, particularly in the Batam industrial area. This condition places the rupiah at its weakest point, directly impacting rising production costs and the price of imported goods. As a region dependent on foreign raw materials, the manufacturing industry in Batam is the sector most sensitive to this volatility. Chairman of APINDO Batam, Rafki Rasyid, revealed that this depreciation is exerting severe pressure on operational costs. ‘Industries still using imported raw materials will feel the direct impact because purchase transactions are mostly conducted in US dollars,’ he stated on Thursday (4/6). According to Rafki, this cost increase could potentially erode company profit margins. If the exchange rate pressure persists, the business community fears it will struggle to maintain efficiency, which could ultimately threaten workforce stability. However, he also noted that export-oriented sectors actually have the opportunity to reap greater profits when dollar revenues are converted to rupiah. At the consumer level, the rupiah’s depreciation is beginning to spark concerns over a surge in prices of everyday necessities, particularly electronic goods, spare parts, and imported foodstuffs. A resident of Batam Centre, Rudi (34), admitted to being anxious that the impact of the dollar’s rise would spill over into the prices of other staple goods. ‘If the dollar continues to rise, the impact will certainly be felt more by the public, especially those of us on fixed incomes,’ added Suryani (28), a resident of Batu Aji. Exchange rate stability is now the main key to safeguarding the investment climate and public purchasing power. Synergy between the government and Bank Indonesia is urgently needed to calm market turmoil amidst global economic uncertainty so that national industrial competitiveness is maintained.