Rupiah Weakness Drives Up Production Costs, BI Central Java: Businesses Remain Optimistic

The Deputy Head of the Bank Indonesia (BI) Representative Office for Central Java, Andi Riena Sari, has acknowledged that businesses, particularly in Central Java, are experiencing production cost pressures due to the weakening of the rupiah against the US dollar. This is most notably felt by those whose raw material supplies depend on imports.

“The core issue is that they (business actors) are facing pressure regarding costs or raw materials which may become more expensive because some are still imported. Therefore, regarding the weakening of the rupiah value, the impact is indeed more towards an increase in production costs,” said Ruliana in Semarang on Friday (26/06/2026).

However, she mentioned that so far, BI’s outlook for 2026 still shows an improving trend. “Because business actors, including consumers, based on our survey results, remain optimistic. And actually, our task here is to manage those expectations,” she stated.

According to Ruliana, optimistic expectations require support. “Because if we start from a pessimistic standpoint, it means there is a lack of motivation to take action,” she said.

“But if we remain optimistic, hopefully, we can move together to realise that optimism so that it becomes more tangible,” Ruliana added.

She also commented on several recent student protests in front of the BI Central Java Office. “Essentially, these demonstrations are actually more about them wanting to obtain updates regarding what the actual conditions are,” she said.

According to Ruliana, the protesting students were questioning BI’s transparency regarding economic conditions. “It seems they may not have accessed Bank Indonesia’s Instagram or website. Because in reality, all information is updated through the communication channels we have provided,” she remarked.