Signs of Declining Purchasing Power in Traditional Markets Amid Rupiah Weakening
Signs of declining public purchasing power have been highlighted by a number of traders at Pasar Atas in Cimahi City, West Java. The market is becoming quieter and purchases are diminishing amid the weakening of the rupiah against the US dollar.
Republika directly observed trading activity at Pasar Atas Cimahi on Thursday (4/6/2026). Buying and selling of various staple goods such as meat, vegetables, cooking oil and others was still occurring. However, on average, purchases are shrinking and the number of consumers coming to the market has fallen.
Vegetable trader at Pasar Atas Baru Cimahi, Willy (40), acknowledged a decline in public purchasing power over the past few weeks. However, he could not confirm whether the strengthening dollar was the sole cause or if other factors were at play.
“Yes, it feels like purchasing power has really dropped now. But if you ask whether it is just because of the dollar, I certainly don’t know. But surely that is one of the reasons,” he said.
Regarding prices, he noted that there has not yet been a significant increase for several commodities that usually rise. One item where the price has soared is shallots, which are now touching Rp60,000 per kilogramme.
“Normally they are Rp30,000 to Rp40,000 per kilogramme, whereas now the price is Rp50,000 to Rp60,000 per kilogramme. For other prices, nothing has risen yet, and hopefully they will not rise,” Willy stated.
Willy said that the stability of commodity prices is not directly proportional to public purchasing power. The goods he stocks would pile up given that some members of the public have now started not shopping at the market.
“Well, if the goods are there, the price is normal, but no one buys them, what can you do? It’s still a problem. There must be a solution, pity those of us at the bottom, the government must know the conditions in the market,” said Willy.
Another trader, Hanna Subiarti, also complained about the same thing, namely that public purchasing power is now beginning to feel depressed. She hopes the government can find a solution so that the dollar does not continue to strengthen against the rupiah.
“Well, we don’t know whether people are reluctant to come to the market because they have no money and prices are expensive, or also because of online shopping now. But what is clear is that the dollar keeps rising; how long will it be like this? We MSMEs are impacted by the rising dollar and the decline in purchasing power,” said Hanna.