Rupiah Plummets to 17,600 per US Dollar, Indonesian Industries Under Pressure, Layoffs Loom

JAKARTA, KOMPAS.com - The weakening of the Rupiah, which has fallen to 17,600 per US dollar, is putting pressure on several national industries, especially sectors that still rely on imported raw materials.

This currency pressure increases production costs and raises the possibility of workforce reductions and layoffs.

The Rupiah’s exchange rate in the spot market plummeted to 17,600 per US dollar on Friday (15/5/2026). The Garuda currency weakened by 71 points or 0.41 percent.

Similar pressure will also be felt in the chemical industry. This sector still relies on imported raw materials. The company’s operational costs are at risk of increasing when the Rupiah weakens.

“First of all, these are supporting raw materials for the industry. The textile industry, for example. Most of its raw materials are imported. Then the chemical industry is also affected because its raw materials are imported,” said Tauhid when contacted by Kompas.com.

The pharmaceutical or drug industry is also being affected by the weakening Rupiah. The majority of the sector’s raw materials still come from abroad.

The automotive sector is also facing pressure, especially vehicles that are not yet produced in Indonesia. Their selling prices are likely to increase along with the weakening of the Rupiah.

“Perhaps these are the most affected. Then the pharmaceutical industry, most of which is imported. Including also automotive vehicles that are not produced in Indonesia, their prices will also increase,” he said.

“As for food and beverages, it doesn’t seem to be too affected for domestic products, but I think the others will be affected. I think those are the ones that will be affected,” Tauhid added.