Rupiah Depreciation Hits Indonesian Students in Australia

Indonesian students in Australia report being heavily impacted by the weakening exchange rate of the Rupiah against the Australian Dollar, particularly amidst rising costs for basic necessities and rental accommodation. Akmal Ismail Zain, an undergraduate Pharmacy student at Monash University who relies on remittances from his parents in Indonesia, noted that his monthly living expenses have increased by one to two million Rupiah since February.

The exchange rate saw the Rupiah hit Rp17,862 per US Dollar and Rp12,791 per Australian Dollar this Tuesday (02/06). Akmal identified tuition fees and rent as his largest expenses and plans to seek part-time employment to mitigate the uncertainty of future currency fluctuations.

The Indonesian Student Association (PPI) Australia has acknowledged the financial pressure on students self-funding their studies. Muhammad Hadiyan Ridho, Chairman of PPI Australia, highlighted the drastic nature of the shift, noting that the rate has moved from approximately Rp10,500 to nearly Rp13,000 per Australian Dollar since February last year, representing a nearly 20 per cent increase.

Stephanie Permata Putri, a Master of Business Administration student at Adelaide University and a recipient of the LPDP and Australia Awards Scholarship (AAS), shared that rising food and rent costs have depleted her savings. While her Australian government stipend received a 5 per cent increase starting 1 January 2026, she noted it is insufficient to offset the broader cost-of-living crisis.

Similarly, Ahimsa Wardah Swadeshi, an LPDP scholar at the University of Melbourne, reported increased pressure from rent and electricity costs after moving into a studio apartment. To cope with the geopolitical and financial climate, many international students are adopting frugal habits, such as cooking more frequently, reducing dining out, and waiting for discounts to manage their essential expenses.