Natural Resource-Based Industries Benefit from Rupiah Depreciation

JAKARTA - The weakening of the rupiah is still beneficial for several industries relying on domestic raw materials. The advantage mainly comes from the exchange rate differential. Products are sold in foreign markets using US dollars (USD), while most production costs are in rupiah. Manufacturers with domestic supply chains also benefit. “Those with mostly domestic raw materials are more advantaged when the rupiah weakens,” Tauhid said on Wednesday, 27 May 2026. Tauhid cited processed oil and gas, nickel, crude palm oil (CPO), and some electronics with significant local content as examples. The forest and plantation-based sectors also benefit from rupiah depreciation. According to Tauhid, industries such as timber, furniture, rubber, pulp, and paper stand to gain additional export margins. “Timber, furniture, rubber-based products, pulp, and paper also benefit because their raw materials are domestic,” he said. Production costs remain relatively stable in rupiah, while export revenue is received in USD.