US Dollar Breaches Rp17,000, Toyota Boss References 98 Crisis - Says This

The continuous weakening of the rupiah exchange rate against the US dollar, reaching even more than Rp17,000 per US dollar, often triggers concerns in various sectors. However, in the eyes of industry players, this situation does not always bring negative impacts. Toyota Motor Manufacturing Indonesia (TMMIN) instead sees the rupiah’s weakening as an opportunity to strengthen export competitiveness. This perspective emerges amid ongoing global pressures shadowing the economy. TMMIN Vice President Director Bob Azam assesses that the exchange rate condition must be viewed from a broader angle. Not only from the side of cost pressures, but also the potential that can be utilised. “Now, do you know with the rupiah becoming Rp17,000? Indonesia becomes competitive as an exporter. It should be like that,” Bob continued. Bob also highlighted that the trend of rupiah weakening is not a new phenomenon. In the long term, exchange rate depreciation has already become a recurring pattern. “Our experience, every year the rupiah will depreciate around 3% to 4%,” he said. In the last few years, the pressure on the rupiah has even been greater than the historical average. This makes businesses need to be more prepared to face volatility. “The last two years, it’s up to 7%,” he added. Nevertheless, this condition does not immediately become a threat to the industry. As long as the industrial foundation is strong, the rupiah’s weakening can actually become a driver for expansion. “So if it keeps weakening, if the industry is strong, it’s not wrong, right,” said Bob. He emphasised the importance of a long-term perspective in facing economic dynamics. Businesses must not only focus on immediate pressures. “As entrepreneurs, we must look at the long term,” he said. Experiences from past crises also become important lessons for the industry. Resilience in facing pressures becomes the key to staying afloat and developing. “Toyota faced tough times like ’98. We never left Indonesia,” Bob revealed. With that approach, the rupiah’s weakening is seen not merely as a risk, but as an opportunity that must be managed. The key is the industry’s readiness in utilising the momentum. “We should be able to take advantage of that export opportunity,” Bob concluded.