Rupiah depreciation affects rural areas, Agriculture Minister says positive effects are greater

JAKARTA — Agriculture Minister Andi Amran Sulaiman said that the depreciation of the rupiah indeed has an influence on rural communities. ‘What the president means by this depreciation is that there is an impact on village communities. Take garlic, for example—the impact is felt because of imports. But how many of our commodities are also exported?’ Amran told Kontan, cited on Tuesday, 19 May 2026. The rupiah’s weakness is not always bad; Amran explained that agricultural exports have surged and imports have fallen. Agricultural imports contracted by as much as 9.66 percent to Rp 41 trillion. There are negative impacts, but the positive effects are greater. ‘This is what the president means. There is an impact, yes, but the positive impacts in villages are also there. Villages are farmers, after all. The positive impact is higher,’ Amran said. Subsidised fertiliser prices have been cut by up to 20 percent and there will be no increase in subsidised fuel (BBM). ‘But remember, subsidised fuel is not rising. Right? Fertiliser, even, is falling,’ Amran said. The government is currently working to strengthen the rupiah’s exchange rate. The funds are to anticipate further rupiah depreciation with market intervention in the bond market. ‘I have Rp 420 trillion in cash that I can put to work there (in the bond market), so the operation can be sustained,’ Finance Minister Purbaya Yudhi Sadewa said on Tuesday, 19 May 2026.