Manufacturing Industry Begin to Feel the Impact of Rupiah Depreciation

INDUSTRY.co.id - Kudus - The Indonesian Employers' Association (Apindo) of Central Java stated that many manufacturing industries are beginning to feel the impact of the weakening of the rupiah against the US dollar, said Chairman of the Association of Indonesian Entrepreneurs Central Java Frans Kongi.

"Almost 70 percent of the raw materials used by manufacturing industries in Central Java are imported raw materials," he said after attending halal bi halal and gathering of Apindo Kudus Leadership Council in Kudus, Wednesday (11/7/2018)

In addition, he said, about 90 percent of business actors incorporated in Apindo Jateng is a manufacturing industry.

Because most of the raw materials used are imported raw materials, he said, of course, the effect on the cost of production becomes more severe.

He estimates the impact of the weakening of the rupiah against the US dollar could affect the competitiveness of products in the international market.

That, he said, certainly should be the government's concern that the manufacturing industry sectors continue to produce sustainably.

"Individual industry players have often faced fluctuations in the rupiah against the dollar, of course, there is anticipation to keep production," he told the media crew.

In addition, he continued, industry players are also required to make savings, especially in the use of electrical energy so that the selling price of products on the market can still compete and the increase is also not too significant.

So far, he added, about thousands of companies in Central Java incorporated in Apindo there has been no sign of significant effect due to the weakening of the rupiah against the US dollar.

"Nevertheless, the influence has been felt and hopefully the rupiah exchange rate is not getting worse because the government of course there is an effort to return to normal," he said.