Rupiah Exchange Rate Weakens, Gapmmi Boss Asks BI To Immediately Intervention

Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman (Photo: Theresia Agatha/VOI)

JAKARTA - Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman asked Bank Indonesia (BI) to take serious anticipation regarding the weakening of the rupiah exchange rate against the US dollar.

It is known, the rupiah exchange rate had dropped to reach Rp16,200 per US dollar after Eid al-Fitr 1445 Hijri.

"We hope that the government can anticipate immediately, especially this exchange rate. If BI can intervene immediately because of this, right, after the holidays, hopefully it will be carried out immediately, so that it is stable so that it is not too heavy," Adhi told reporters when met at the Ministry of Industry office, Jakarta, Tuesday, April 16.

"Yesterday, I touched Rp. 16,200, if this continues, it may increase due to uncertainty," he continued.

Moreover, said Adhi, foreign outflows (capital outflows) are also feared to increase to the United States (US).

"Moreover, I also heard that capital outflows have increased to the US. Interest rates are also high there. We also have to anticipate," he said.

According to Adhi, the impact of the weakening of the rupiah will also disrupt the food and beverage (mamin) industry in the country. One of them is related to the import duty of raw materials.

"We hope that the government can evaluate (review) whether import duties can be temporarily suspended during this difficult time, so that there is a balance between finished products and raw materials. Because if the product becomes 0, while raw materials are subject to import duties amid high costs. Of course this will have an impact on the competitiveness of local products for imported products," he added.

Meanwhile, based on data from Bank Indonesia's Jisdor exchange rate, the rupiah exchange rate was closed at a price of Rp. 16,176 per US dollar on Tuesday, April 16.

The current position of the rupiah is the weakest since April 6, 2020 or the last four years since the COVID-19 pandemic.