Vehicle Spare Part Prices Driven Up by Dollar Exchange Rate; Oil Prices Rise by Rp 20,000

JAKARTA — The depreciation of the rupiah against the US dollar, which has breached the Rp 1.760 mark, has contributed to a sharp rise in vehicle spare part prices. This price surge has forced workshop owners to increase their retail prices, with engine oil experiencing the most significant hike.

Anto (48), a motorcycle workshop owner in the Palmerah area of West Jakarta, revealed that the price spike is triggered by the weakening rupiah against the dollar, as most of his inventory consists of imported goods. Anto explained that over the past few weeks, the prices of various essential workshop supplies have risen by approximately 20 to 30 per cent.

The type of item most affected by the surge is engine oil, which is a routine necessity for motorised vehicle owners. Furthermore, several brands of oil have recently faced stock shortages due to restrictions on imports.

In addition to oil, price increases have been observed across various other spare parts, ranging from tyres to small components such as bolts. Based on information gathered by Anto from wholesale agents, the price hikes occurring over the last one to two months originated from global supply chain disruptions and the rising production costs of packaging materials, such as plastic.

This situation has been further exacerbated by the pressure of the US dollar exchange rate, which has climbed alongside the weakening rupiah. Before these price increases were officially implemented, Anto faced difficult circumstances due to goods shortages at the wholesale level for several weeks.

Echoing Anto’s sentiments, Zuhri (50), another workshop owner, confirmed the price increases, noting that the price of vanbelts has risen by approximately Rp 15,000.