Farmers Say Weakening Rupiah Is Also Weighing on Sacrificial Animal Sales

Chairman Kusnan, of the Indonesian Independent Farmers Association (Pemindo), has said that the weakening rupiah against the United States dollar is starting to affect the sale of kurban animals ahead of Eid al-Adha 2026. Kusnan notes that this condition is felt directly by smallholder farmers in villages, including himself, who runs a small-scale sheep farming business. ‘Usually in the Hajj months like now, since the beginning of Dhul-Hijjah, the sheep have started selling out. But at the moment, many have not been sold yet,’ Kusnan said on Tuesday (19 May 2026), quoted from YouTube Obrolan News Room Kompas.com. He said this condition is one of the signs of weakening consumer purchasing power amid rising living costs and production costs. ‘That is a real impact we feel at the grassroots level, especially in rural areas,’ he said. He revealed that the price of layer chicken feed has risen again by around Rp 200 per kilogram at the start of this week. If accumulated, feed prices for the month have risen by Rp 400 to Rp 500 per kilogram. ‘Prices of living costs and production costs rise when the rupiah weakens,’ he said. According to Kusnan, Indonesia still relies on imported raw materials for production, including the livestock sector. As a result, rupiah depreciation raises production costs for farmers. He said smallholder farmers have to buy feed and medicines from manufacturers, so increases in raw material costs greatly affect their businesses. He notes that cheaper prices do not necessarily boost consumer purchases. ‘Prices should be cheaper and easier to buy, but apparently consumer purchasing power is weak,’ Kusnan said. He believes rupiah depreciation does not only affect large businesses, but is also felt by rural communities and SMEs. ‘Rupiah depreciation is very impactful for smallholder farmers, SMEs, and the lower end of micro businesses,’ he said. For reference, the rupiah in the spot market closed weaker on Tuesday (19 May 2026). The rupiah depreciated by 38 points or 0.22% to Rp 17,706 per US dollar.