Measuring Plus Minus Weakening Rupiah In Mining Business

Mine (between)

JAKARTA - Special Staff to the Minister of Energy and Mineral Resources (ESDM) for the Acceleration of Mineral and Coal Governance Irwandy Arif revealed that there are two possibilities arising from the recent weakening of the rupiah against the domestic mining business.

The first impact, Irwandy said, the weakening of the rupiah against the US dollar could have an impact on the company's revenue that would rise.

"The weakening of the rupiah will certainly increase the expenditure for the purchase of equipment or goods from abroad. On the other hand, this can increase profits for companies that export in dollars and make a profit in rupiah," said Irwandy, quoted Monday, June 24.

However, Irwandy said this could not be generalized to all mining companies. For example, PT Bukit Asam (PTBA), which is known to sell the majority of its coal mining products domestically, so it cannot enjoy the 'collapse durian' of this weakening rupiah.

"So this depends on each company. We cannot generalize it. Weakening of the rupiah is a common thing and can be called a cycle. Moreover, the world is currently waiting for the decision of The Federal Reserve or the FED regarding interest rates," he explained.

Kemudian dampak kedua, lanjut dia, adalah peningkatan cost oprasional karena perusahaan baanyak melakukan pembelian barang yang dibutuhkan untuk operasional dari luar negeri, termasuk harga bakar.

"Ya utama semua pembelian yang harus dibayar dari luar, harus dibayar dalam dolar, itu ya biaya bertambah tentunya kan dalam rupiah," pungkas dia.

For information, citing Bloomberg, the Rupiah exchange rate on Friday, June 21, 2024, the rupiah exchange rate on the spot market closed lower by 0.12 percent at the level of Rp. 16,450 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.23 percent to a price level of Rp. 16,458 per US dollar.