TV and AC Prices Begin to Rise, Weak Rupiah Pressures Consumers' Wallets
JAKARTA, KOMPAS.com - The rise in the US dollar exchange rate against the rupiah is beginning to impact the national electronics industry. Several electronic products, such as televisions and air conditioners (ACs), have experienced price increases in recent weeks.
Citing Bloomberg, at the close of spot market trading on Wednesday (13/5/2026), the rupiah closed at Rp 17,529 per US dollar. Year to date, the rupiah has weakened by around 5.1 percent and 18.7 percent over the last five years.
Chairman of the Indonesian Electronics Commodity Entrepreneurs Association (Apkonik), Deny Irawan, stated that the situation is also starting to affect consumer behaviour, with many choosing to delay purchases amid rising prices.
He explained that the rupiah’s depreciation has direct and indirect impacts on the national electronics industry, as most components still rely on imports.
“Most electronic components used by the domestic industry, such as semiconductors, ICs, display panels, sensors, capacitors, and several manufacturing raw materials, still depend on imports,” Deny told Kompas.com on Thursday (14/5/2026).
However, Deny clarified that the impact on market selling prices does not always occur immediately. Several factors influence price adjustments, from old import stock, industry efficiency strategies, to high market competition.
“Many industry players still have import stock at old exchange rates, so price increases are usually held back temporarily. Producers are also striving for efficiency so that cost increases are not fully passed on to consumers,” he said.
He added that the tight competition in the electronics industry makes producers cautious about raising prices to maintain public purchasing power.
“In Jakarta’s electronics trading centres, prices for products like televisions and ACs have reportedly risen by around 2 percent to 5 percent. This increase is mainly triggered by the swelling costs of importing components and finished goods that still use the US dollar,” he said.
In addition to price rises, pressure on public purchasing power is also being felt by business players. Several traders report that consumers are starting to hold back on purchases because price changes are occurring quite quickly compared to the previous month.
“Some traders have reported that consumers are delaying purchases because prices are changing quite quickly compared to the previous month. There are even reports of retail sales declines of up to around 50 percent at some electronics trading points,” said Deny.
Nevertheless, the industry is still trying to contain price increases to avoid being too aggressive. Many producers are said to still rely on old stock while carrying out operational efficiencies to keep prices competitive.
Deny assessed that if the rupiah’s weakening persists in the long term, the potential for further price increases remains significant, especially when new stock with higher import costs enters the market in the next quarter.
Therefore, Apkonik is pushing for the strengthening of the domestic component industry and an increase in the domestic content level (TKDN) so that the national electronics industry is not too vulnerable to global exchange rate fluctuations in the future.
“From the association’s side, we are pushing for the strengthening of the domestic component industry and an increase in TKDN so that the Indonesian electronics industry is not too vulnerable to global exchange rate fluctuations in the future,” he emphasised.