Rupiah Exchange Rate Weakens, Hyundai's Response

JAKARTA - The rupiah’s continuous weakening against the US dollar is beginning to raise concerns in the automotive industry, as it could impact vehicle prices and car loan interest rates. Based on Tuesday’s trading data (12/5/2026), the rupiah closed at Rp 17,529 per US dollar, one of its weakest positions in recent times. In response to the situation, Hyundai Motor Indonesia’s Chief Operating Officer, Fransiscus Soerjopranoto, stated that the rupiah’s depreciation could indeed affect the automotive industry in general. However, up to now, according to him, the government is still trying to keep the economy running by maintaining the Bank Indonesia reference rate, or BI-Rate, at 4.75 percent. “But up to now, what we’ve seen is that even though the exchange rate is weakening, the interest rate is still pegged at 4.75, the BI-Rate,” he said. Fransiscus views this step as quite important for maintaining people’s purchasing power, including in the automotive sector which still heavily relies on credit financing. “So we see the government is also trying to hold back so that the economy keeps turning,” he stated. As an automotive industry player, Hyundai appreciates the government’s actions. Fransiscus hopes the national automotive market can remain resilient amid global economic pressures and the rupiah’s weakening exchange rate. The rupiah’s depreciation is considered to impact the automotive industry because some vehicle components still depend on imports, from raw materials to certain technologies. Additionally, exchange rate fluctuations could also affect new vehicle prices and car loan instalment schemes in the domestic market.