Textile Sector Pressured by Fuel Price Surge and Rupiah Depreciation

Jakarta, CNBC Indonesia - The weakening Indonesian rupiah, which has fallen to Rp17,800 per US dollar, along with Bank Indonesia’s benchmark interest rate hikes, global supply chain disruptions, and rising energy costs, are increasingly straining Indonesia’s manufacturing sector, including textiles.

APSyFI Chairman Redma Gita Wirawasta stated that the fuel price increase has raised raw material costs by 40%, forcing factories to reduce operational capacity.

Additionally, raw material shortages due to supply chain issues and the rupiah’s depreciation are eroding cash flow, as petrochemical-based raw materials must be imported.