Facing Rupiah Weakness, Businesspeople Begin to Hold Back Expansion and Cut Costs

JAKARTA, KOMPAS.com - Business circles are preparing anticipatory measures to address the weakening exchange rate of the rupiah, which is currently still above Rp 17,500 per US dollar. One of these involves holding back expansion and implementing savings.

Apindo Chair Shinta Widjaja Kamdani stated that the continuous weakening of the rupiah, creating new all-time lows, is a serious concern for the business world as it exerts pressure on company cost structures and cash flows.

“In this context, it should also be noted that the pressure is not temporary but has the potential to continue as long as global factors have not subsided,” Shinta told Kompas.com on Wednesday (13/5/2026).

Therefore, businesspeople are now beginning to shift their business strategies to be more cautious, considering risks to face the still high global uncertainties.

“Meanwhile, investments that are more speculative or highly dependent on external conditions tend to be postponed,” she added.

In addition to holding back expansion, businesspeople are also strengthening risk management strategies, including increasing the use of hedging instruments to address exchange rate fluctuations.

Business actors are also restructuring their debt structures to achieve a better balance between rupiah and foreign currency (valas).

On the operational side, efficiency is being pursued through the rationalisation of capital expenditure, optimisation of working capital, and increased company productivity.

“In other words, there is still room for adaptation, but it is not fully able to match the magnitude of the current external pressures,” said Shinta.