Rupiah at Rp17,500, Zulhas on Alert – Ready to Disburse Subsidies for Imported Food
Jakarta, CNBC Indonesia - Coordinating Minister for Food Zulkifli Hasan (Zulhas) has spoken out on the impact of the weakening rupiah on the prices of imported commodities. He assured that the government will intervene if exchange rate spikes cause imported food prices to exceed the highest retail price (HET) or reference selling price (HAP).
It should be noted that the rupiah reopened weaker against the US dollar in this week’s final trading session on Wednesday (13/5/2026), ahead of the long holiday. According to Refinitiv data, the Garuda currency started trading with a 0.06% depreciation to Rp17,500/US$.
This weakening occurred after the rupiah also corrected sharply by 0.49% to Rp17,490/US$ at yesterday’s close. That position also became the weakest closing level for the rupiah ever.
When asked about the fate of imported food commodities such as soybeans, garlic, wheat, beef, sugar, and corn for industrial needs, which are potentially affected by the rising US dollar, Zulhas emphasised that the government will act quickly to keep food prices under control, so as not to burden the public.
“We will continue to safeguard it. If the price exceeds HET or HAP, the government will certainly intervene by providing subsidies,” said Zulhas when met at Palmerah Market, Central Jakarta, on Wednesday (13/5/2026) morning.
According to him, intervention measures can be carried out by both central and regional governments. He mentioned that the government has budgets for emergencies or unexpected food price fluctuations.
“Both central government, provincial government, regency government have budgets for unforeseen disasters. There is the budget. So it will be subsidised. Whether the cost or the price,” he said.
Zulhas emphasised that a quick response is the main key to curbing food price volatility, especially for imported commodities sensitive to US dollar exchange rate movements.
“So we must act quickly. Because if we’re slow, the housewives will go on strike and we’ll be in trouble. So it must be quick,” he said.
He also urged regional heads to actively control food prices in their respective areas if there are price surges due to exchange rate pressures or distribution disruptions.
“I invite regents and governors to act quickly. Quickly if there are problems in your area. We respond together quickly,” said Zulhas.
Furthermore, Zulhas explained that the central government will handle various strategic aspects such as food reserves, distribution, and budget support. Meanwhile, regional governments are asked to intervene according to their authority.
“What the centre handles like Bulog we handle, BGN we handle, Ministry of Transportation we still handle, APBN we handle. But if it’s the regional obligation, the regions too, regencies, mayors, governors must also quickly control,” he asserted.