Rupiah Weakens, Pressuring Import Costs and Industrial Debt

JAKARTA — The rupiah’s depreciation is expected to pressure multiple economic sectors in the second half of 2026, particularly industries reliant on imported energy and raw materials.

Senior economist at Paramadina University, Wijayanto Samirin, said the impact of currency depreciation is not limited to specific sectors as the global economy is now interconnected.

“The issue is that the global economy has become a single ecosystem, particularly within ASEAN. Therefore, all sectors will be affected, especially as interest rates are likely to rise,” Wijayanto told Kompas.com on Thursday, 28 May 2026.

“The most affected sectors are aviation, maritime and land transport, pharmaceuticals, petrochemicals, plastics, electronics, automotive, technology, and construction,” he said.

Wijayanto explained that the rupiah’s depreciation would make the cost of importing raw materials, energy, and foreign debt repayments more expensive.

This situation could ultimately squeeze business margins and drive up domestic prices.

Similarly, the pharmaceutical industry, still reliant on imported drug raw materials, faces the same pressures.

In the automotive and electronics sectors, the rupiah’s weakness is expected to trigger higher product prices due to high import components in production chains.

Additionally, Wijayanto noted that rising interest rates, potentially resulting from rupiah pressures, would burden the construction and property sectors due to higher financing costs.

The rupiah continued its depreciation the previous day.

On Wednesday, 27 May 2025, the rupiah weakened 0.03% to Rp 17,801 per US dollar in the spot market.