US dollar breaks through Rp 17,800, boon for commodity-exporting regions

Samarinda — Economist Jusuf Kuleh from Mulawarman University (Unmul) in Samarinda, East Kalimantan, said the strengthening of the US dollar to Rp 17,814 per dollar on Friday (29 May 2026) could be a boon for commodity-exporting regions.

‘An increase in the US dollar against the rupiah could be a boon for commodity-exporting regions, such as East Kalimantan Province (Kaltim), which exports coal, crude oil, liquefied natural gas (LNG), and palm oil, because payments are made in US dollars,’ said Jusuf Kuleh in Samarinda, Kaltim, on Friday.

According to Jusuf, for mining and plantation companies in Kaltim, the current situation is like a ‘durian runtuh’ that instantly doubles their profits, indirectly boosting regional revenue (PAD) through revenue sharing.

However, the rise in the US dollar against the rupiah also causes higher import prices and inflation. This situation can also lead to increased logistics and transportation costs, automatically raising food prices in traditional markets in Samarinda, Balikpapan, and Penajam Paser Utara, Kaltim.

Moreover, Kaltim is not a major food-producing region, so most staple goods and consumer items still need to be imported from Java and Sulawesi.

Additionally, the massive Nusantara Capital City (IKN) project currently underway in Kaltim is also at risk of being affected by the US dollar’s rise.

Jusuf Kuleh hopes Bank Indonesia continues to intervene in the money market, including the spot market, to curb the rupiah’s depreciation and prevent it from breaking new psychological barriers.

At the regional level, the East Kalimantan Provincial Government is also urged to act swiftly to capitalise on the export revenue surge to strengthen social safety nets for vulnerable communities.

‘Critical rupiah is a real test of our economic resilience. If missteps are made in mitigating risks, the figures of Rp 17,900 yesterday and Rp 17,800 today are not just temporary records, but the gateway to an economic crisis, which must be anticipated,’ Kuleh said.