Rupiah Weakens: Expert Tips for Prudent Money Management

Republika.co.id, Jakarta — The rupiah’s exchange rate against the United States dollar came under renewed pressure. On Wednesday (20 May 2026), the rupiah was expected to move in the range of Rp 17,600 to Rp 17,750 per US dollar.

Development Economics expert at Muhammadiyah Malang University (UMM), Yunan Syaifullah, explained that the dollar’s rise can trigger a chain reaction that directly burdens household spending, especially given Indonesia’s high dependence on imported goods. ‘Of course staple prices such as tofu and tempeh rise because 90 percent of national soybean needs are still imported,’ he said. ‘Then fuel and transport costs rise because Indonesia still depends on imported oil and energy, which ultimately makes monthly shopping more expensive,’ he added in a written statement, quoted on Wednesday, 20 May 2026.

Many people feel secure because they do not directly buy imported goods. However, according to Yunan, their living costs will continue to swell as production costs for local industries rise. ‘In reality, whether they buy imported goods or not, they will still be affected by a domino effect starting with higher fuel, higher raw materials, and higher production costs. The rise in the dollar this will impact all layers of society,’ he said.

He then revealed several prudent tips for managing finances in the current conditions. First, he urged the public to immediately re-evaluate their own cash flow. Cancel non-essential subscriptions and trim conspicuous consumption as an emergency step that must be taken. ‘In a volatile exchange rate environment, an individual’s economic stability is not determined solely by how large their income is, but by how healthy and rationally they manage their finances,’ said Yunan.