Impact of Weakening Rupiah on Importers: Efficiency in Working Hours
The negative impact of the weakening Rupiah is beginning to be felt by import entrepreneurs. The General Chairman of the Indonesian National Importers Association (GINSI), Subandi, stated that businesses are starting to take several steps due to the US Dollar exchange rate, which has now touched Rp 18,000.
One measure being taken by entrepreneurs amidst the increasing cost burden is the efficiency of employee working hours. “Some industries, particularly those that are members of GINSI, have begun reducing work rhythms; what was previously three shifts is now down to two shifts,” said Subandi when contacted on Saturday, 6 June 2026.
Entrepreneurs are also increasingly anxious as the Rupiah approaches the psychological level of 19,000 per US Dollar, which exceeds the operational threshold for the business world. This concern arises because the currency was in the range of 16,000 per US Dollar at the beginning of the year. As of the close of trading on Friday, 5 May 2026, the Rupiah approached a record low of 18,030 per US Dollar.
Subandi stated that importers actually set a safe Rupiah limit between 15,500 and 15,800 per US Dollar, a rate last recorded in 2024. According to him, importers have calculated that the maximum tolerable psychological limit is 19,000 per US Dollar.
“If it touches 19,000 and above, business players have informed us that they will struggle to continue production or bring goods in from abroad,” Subandi added.
An increase to 19,000 per US Dollar represents an approximately 20 per cent increase from the safe limit expected by entrepreneurs, meaning import capital costs will rise significantly. Subandi provided an example using the exchange rate from two years ago: with a capital of Rp 100 billion, an entrepreneur could obtain, for instance, 1,000 units of goods. If the Rupiah falls to the 19,000 level, the entrepreneur would have to pay Rp 120 billion for the same volume of goods. In addition to capital expenditure, taxes to be paid will also increase because taxes are collected based on transaction invoices.
Furthermore, there is an increase in logistics costs and other shipping expenses, resulting in an increase in the cost of goods sold for imports. In this condition, Subandi said, entrepreneurs have no choice but to raise product selling prices. This is a difficult option amidst currently weak consumer purchasing power.
If imports and production decrease, efficiency becomes the path to be taken, starting from the reduction of employee working hours and temporary housing, to potential layoffs (PHK).
Meanwhile, Bank Indonesia and the government are continuing their efforts to maintain the stability of the Rupiah. Bank Indonesia Governor Perry Warjiyo and Finance Minister Purbaya Yudhi Sadewa have ensured that the coordination of fiscal and monetary policies remains tight amidst the Rupiah’s weakness. Perry stated that both institutions are working to maintain stability and encourage economic growth.
“The strengthening of fiscal and monetary coordination is something we continue to do, and currently, the focus is on how fiscal and monetary policies can be in sync, supporting and strengthening each other through their respective capacities to bolster joint efforts in stabilising the Rupiah exchange rate,” Perry said during a press conference at the House of Representatives Building, Jakarta, on Saturday, 6 June 2026.