Indonesian Political, Business & Finance News

PDi-P: Rural communities don't use the US dollar but are affected by rising prices

| | Source: KOMPAS Translated from Indonesian | Economy
PDi-P: Rural communities don't use the US dollar but are affected by rising prices
Image: KOMPAS

Jakarta - PDi-P Central Leadership member Djarot Saiful Hidayat argues that rural communities are still affected by the US dollar’s appreciation against the rupiah, even though they do not use the currency in daily activities.

According to Djarot, the rupiah’s weakness against the dollar would be felt through increased prices of essential goods used by the public.

‘If rural people aren’t directly affected, well, they don’t use dollars, of course. But look at the prices, they’re soaring right now,’ Djarot said during a DPRd PDi-P nationwide Technical Guidance (Bimtek) event on Saturday, 30 May 2026.

He added that soybean price rises due to the rupiah’s depreciation have put pressure on business operators.

‘For example, tofu and tempe producers are struggling because soybean prices have gone up. If this continues, they could shut down,’ Djarot said.

The former Jakarta governor stressed that a stronger US dollar against the rupiah directly affects household commodity prices.

‘So, a higher dollar price significantly impacts the rise in people’s basic needs. Indirectly, rural communities are affected, you’re affected, we all are,’ he said.

‘Let the President explain what it means when the dollar rises but rural people aren’t affected,’ he added.

Previously reported, President Prabowo Subianto responded calmly to concerns about the rupiah’s depreciation against the US dollar.

During the inauguration of the Mother Marsinah Museum and shelter in Nganjuk Regency, East Java, on Saturday, 16 May 2026, Prabowo stated that small communities, particularly in villages, are not directly impacted by dollar exchange rate fluctuations.

‘Village people don’t use dollars,’ Prabowo said.

On the same occasion, he also emphasised that national food and energy supplies remain stable amid global uncertainty.

‘Food is secure. Energy is secure. Many countries panic, but Indonesia is still okay,’ Prabowo said.

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