Jakarta, ThedailyID — The Indonesian rupiah weakened to around Rp17,600 against the US dollar, prompting lawmakers to warn about possible increases in food prices and living costs.
Members of House of Representatives of Indonesia (DPR) said the rupiah’s decline could affect imported goods, fuel prices, and industrial production costs across several sectors.
Lawmakers also urged the government and Bank Indonesia to maintain market stability and strengthen public confidence amid global economic uncertainty.
According to analysts, external pressures such as strong US dollar performance, geopolitical tensions, and global interest rate policies continue weighing on emerging market currencies, including the rupiah.
Economists warned that a weaker rupiah may increase inflation risks because Indonesia still relies on imports for several raw materials and consumer products.
As a result, businesses could eventually pass higher operational costs to consumers through rising prices.
Several DPR members also reminded authorities to monitor the impact on lower-income households, which remain more vulnerable to inflation and price hikes.
Meanwhile, Bank Indonesia continues implementing monetary policies aimed at stabilizing the currency and maintaining foreign exchange reserves.
Financial market observers noted that the rupiah’s movement remains heavily influenced by global investor sentiment and capital flows.
Despite the pressure, officials expressed optimism that Indonesia’s economic fundamentals remain relatively resilient compared to previous financial crises.
