Strategies for managing expenditure during Rupiah depreciation

Financial planner Rista Zwestika, CFP, WMI, from the financial education and consultancy platform Finante.id, has highlighted the importance of prioritising expenditures during periods of Rupiah depreciation. The decline in the exchange rate has the potential to cause price increases for goods and services; therefore, careful financial management is essential to ensure primary family needs are met.

“In conditions where the Rupiah weakens and potentially drives up the prices of various necessities, the public needs to be more disciplined in managing expenditure priorities,” Rista stated when contacted by ANTARA on Monday.

Rista emphasised the importance of setting expenditure priorities and preparing emergency funds to secure family financial stability during periods of economic instability. She noted that the primary focus must be on essential expenses, including food, transport, education, healthcare, and routine household utility bills.

According to her, the allocation of funds for basic necessities and regular household bills must be prioritised. For those with debts or instalment obligations, she advised attempting to make payments on time to avoid additional burdens such as interest or late fees.

Furthermore, she suggested the need to re-evaluate spending on consumer goods and non-urgent requirements when the economic climate is unfavourable. “Consumptive or non-urgent expenditures should be re-evaluated until conditions become more stable,” she added. She concluded that such expenditure evaluations are necessary to maintain household budget balance and prevent greater financial pressure in the future.