Rupiah Weakens, Muhammadiyah Urges Business Ethics Amid Economic Hardship
The weakening of the Rupiah, which has breached the level of Rp 18,000 per US Dollar, is not only impacting the financial sector but also triggering price increases for various basic necessities. In the midst of this situation, the Vice Chairman of the Economic and Business Council of the Muhammadiyah Central Board, Mukhaer Pakkanna, has reminded business actors to maintain business ethics and Islamic values when facing economic pressure.
According to Mukhaer, the ongoing depreciation of the Rupiah indicates declining market confidence in several of the government’s fiscal policies. This condition has resulted in rising commodity prices, particularly for basic needs that remain dependent on imported components.
“Currently, the market is punishing the government. As a result, prices continue to climb. This is especially true as the main components of most basic necessity products are imported,” Mukhaer stated when contacted by Republika on Saturday (6/6/2026).
He assessed that in an economic climate filled with uncertainty, Islam teaches the community not to panic in the face of price volatility. The public is urged to adjust household expenditures by prioritising truly essential and urgent needs.
“Household budgets need restructuring. The main focus should be on allocating funds for urgent and important matters only. Avoid excessive consumption in tertiary sectors. This must be maintained. Do not engage in non-productive financing,” he said.
In addition to frugality, Mukhaver emphasised the importance of strengthening social solidarity amidst economic pressure. According to him, the spirit of mutual assistance is one of the solutions to alleviate the burden on communities affected by rising prices.
He explained that Islam views price fluctuations as a natural part of market mechanisms and as part of divine decree, provided they are not accompanied by fraudulent practices. However, he noted that a frequent issue in Indonesia is market distortion caused by the dominance of large capital groups.
“The issue is that fraud or market distortion has become common in the domestic market. The market is not fair because the distribution mechanism of goods and services is controlled by giant capital owners,” he said.
Mukhaer acknowledged that business actors are currently facing heavy challenges due to the decline in public purchasing power, which has led to falling sales turnovers. However, he reminded that such conditions are part of the trials that every entrepreneur must face.
“Business does not move linearly. It is full of twists, turns, joys, and sorrows. A business person is not successful if they have never faced trials. There are many examples of success from the era of the Prophet’s companions to the contemporary era,” he concluded.