Battered by the Exchange Rate

3 hours ago 3

April 30, 2026 | 04:39 pm

TEMPO.CO, Jakarta - Jemmy Kartiwa did not expect the rupiah to breach a new threshold above 17,000 per United States dollar. The development has rattled the textile industry, which still relies heavily on imported inputs. Key materials such as polyester fiber, rayon, and cotton are all priced against the US dollar. "We initially thought it would not pass Rp17,000 per dollar. But over the past few months, it has continued to exceed that level," the Chairperson of the Indonesian Textile Association told Tempo on Wednesday, April 22, 2026.

At the close of trading on Friday, April 24, the rupiah stood at 17,229 per US dollar, strengthening 0.33 percent from the previous day. A day earlier, it had briefly hit an all-time low of around Rp17,315.

Jemmy said the weakening rupiah has driven up production costs. Most input costs are denominated in dollars, while finished products—especially garments—are largely sold domestically in rupiah. He estimated that textile raw material prices have risen by 30 to 40 percent. The burden has been compounded by monthly purchase contracts. "Exchange rate fluctuations are immediately reflected," he said. At the same time, companies cannot fully pass those higher costs on to consumers, whose purchasing power remains weak.

Throughout April 2026, the rupiah averaged above 17,000 per US dollar, exceeding the macroeconomic assumption set in the 2026 State Budget of Rp16,500.

Read the Complete Story in Tempo English Magazine

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