Weakening Rupiah Benefits CPO and Coal Businesses

Jakarta — The Indonesian rupiah remained under pressure against the US dollar. According to Refinitiv data, the rupiah weakened slightly by 0.03% to Rp16.940/USD at the opening of trading on Monday morning.

This depreciation continues the downward trend from the previous trading day on Friday (13 March 2026), when the rupiah closed 0.30% weaker at Rp16.935/USD.

Sukatmo Padmosukarso, Chairman and Executive Director of the Indonesian Export Financing Institution (LPEI), explained that the weakening rupiah can enhance the competitiveness of Indonesian export products in global markets. This particularly benefits commodities produced from local raw materials.

“Especially for commodity exports, CPO and coal will certainly benefit greatly from rupiah depreciation,” Sukatmo stated during CNBC Indonesia’s Power Lunch event on Monday (16 March 2026).

Beyond mining and plantation commodities, opportunities have also opened for export-oriented manufacturing sectors such as textiles, garments, and footwear.

Additionally, the trend of lower interest rates has reduced production costs and created room for businesses to expand capacity.

Bank Indonesia has reduced its benchmark interest rate (BI Rate) five times throughout 2025 until September. The most recent cut occurred in September 2025 by 25 basis points to 4.75%.

“These lower interest rates also impact production costs, making them cheaper. There is also the implication of more efficient investment. So with declining interest rates in recent years, this provides opportunities for exporters wanting to develop their capacity,” Sukatmo added.