Food and Beverage Industry Struggles to Adjust Prices Due to Rupiah Weakness

The Chairman of the Indonesian Food and Beverage Producers Association (Gapmmi), Adhi S. Lukman, stated that the industry is struggling to determine product price increases due to the weakening rupiah. Price adjustments must still be made, but considering that public purchasing power has not yet recovered, these difficulties persist. “Some have already adjusted selling prices, although not significantly because purchasing power is taken into account,” he said, quoted from Kontan on Thursday (14/5/2026). “The increases in raw materials, packaging, and others are inevitably absorbed by reducing margins or even eliminating margins altogether,” he added. Gapmmi is still waiting and hoping for the exchange rate to strengthen soon. Until that strengthening occurs, the food and beverage industry is struggling to decide on its course of action. “This uncertainty is the problem. We don’t know how far the exchange rate will go, making it difficult to determine the steps to take,” Adhi said. The government is currently focused on strengthening the rupiah’s value. Indonesia’s economic foundation is strong, and efforts to bolster the rupiah are underway. “No (need to panic). Because our economic foundation is good, we know exactly our weaknesses and can fix them,” said Purbaya, quoted from Kompas.com on Wednesday (13/5/2026). Regarding fears that Indonesia’s economy might collapse like the 1998 Monetary Crisis, that will not happen. “We won’t be as bad as in ’98 again, not bad at all. With a strong economic foundation, it’s actually not too difficult,” he explained. Purbaya also believes that Bank Indonesia (BI) can restore the rupiah to its fundamental value as before. “Well, you ask the Central Bank about that; they are the ones in charge. But I’m confident they can control it. We’ll help a little bit later,” Purbaya added.