JAKARTA - Chairman of the Association of Indonesian Food and Beverage Producers (Gapmmi) Adhi S. Lukman asked the government to take serious anticipation regarding the weakening of the rupiah exchange rate against the US dollar.
Quoting Bloomberg, the rupiah exchange rate on Monday, June 24, 2024, the rupiah exchange rate in the spot market closed higher by 0.34 percent at the level of Rp. 16,394 per US dollar. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed up 0.16 percent to a price level of Rp. 16,431 per US dollar.
Based on banking analysis, if the depreciation of the rupiah has reached 6.5 percent, this will affect the price of raw materials for the food and beverage industry.
Adhi said, raw materials for the food and beverage industry are still very dependent on imports. Thus, if the rupiah continues to weaken, the production price of the food and beverage industry will also increase.
"If the depreciation of rupiah is 6.5 percent, it means that the impact on raw material prices is extraordinary. Meanwhile, we are still absorbing it," said Adhi when met at the Ministry of Industry office, Tuesday, June 25.
Adhi said the rupiah exchange rate against the US dollar continued to weaken. From around Rp. 15,000 to date, it has reached its weak figure at Rp. 16,400.
"Yes, we calculated because (increased) Rp. 1,500-Rp. 1,600, yesterday we discussed with the bank that year to date has reached 6.5 percent of the depreciation of rupiah," he said.
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He added that if the government could not withstand the rupiah exchange rate against the US dollar of more than Rp. 16,500, it was feared that there would be an increase in production prices.
"Each company is different, yes. My estimate is that with this rupiah depreciation for raw materials, which depends on the US dollar, it can be around 2-2.5 percent, the increase in production prices," he said.
According to Adhi, when the rupiah continues to weaken, it is predicted that the small-scale food industry will not last long. This is because their raw material stock is only daily or weekly.
"We hope that the government will continue to intervene (the rupiah exchange rate against the US dollar) for no more than Rp. 16,500," he added.
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