Rupiah Weakens; Will Chery Car Prices Rise?

The depreciation of the rupiah against the United States dollar is starting to raise concerns in the domestic automotive industry. The situation could also impact vehicle prices, including Chery’s models in Indonesia. In recent days, the rupiah exchange rate even breached the Rp 17,700 per US dollar level. This is seen as potentially increasing production costs for vehicles, particularly for imports and the use of components and raw materials that are still denominated in US dollars.

‘We are watching this as well because one of the reasons is that all costs are rising, so there is that factor as well; we are trying to calculate,’ said Zeng Shuo in Jakarta, on Monday (18 May 2026).

An increase in the exchange rate can automatically affect production costs, logistics, and the procurement of raw materials. Nevertheless, several car manufacturers are currently choosing to hold prices while monitoring market developments and exchange-rate stability. For brands that are aggressively introducing new models, particularly electrified vehicles, currency fluctuations pose a challenge because much of the technology and major components still come from abroad.

The China-based manufacturer says it is still calculating the impact of rupiah weakness on the company’s cost structure before deciding on further steps regarding vehicle pricing in the domestic market.

‘But if costs stay rising, there is a possibility that prices will also rise,’ said Zeng Shuo.

If the rupiah’s weakness continues, it is not impossible that the price of new cars in Indonesia will adjust in the near future.