Manufacturing Entrepreneurs in Central Java Begin to Impact the weakening of the Rupiah

By : Ridwan And Aldi Firhand. A | Thursday, July 12 2018 - 21:20 IWST

Plastic Manufacture
Plastic Manufacture

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

This was conveyed by the Chairman of the Indonesian Employers Association (Apindo) Central Java Frans Kongi in Kudus, East Java (11/7/2018) yesterday.

"Almost 70 percent of the raw materials used by manufacturing industries in Central Java are imported raw materials," he said.

Added Frans, 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, of course, the effect on the cost of basic production becomes increasingly heavy," he explained.

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, continued Frans, certainly should be the government's concern that the manufacturing industry sectors continue to produce sustainably.

"Each of the industry players must have often faced fluctuations in the rupiah against the dollar, of course, there is anticipation to keep production," added Frans.

According to him, manufacturing industry actors are required to think creatively and effectively in taking strategy to keep their business running well.

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.

"Industry players are also expected to work efficiently, meaning that fewer raw materials can produce more products," he said.

He hopes that under such conditions the government may consider providing special incentives, especially in labor-intensive industries in the form of tax breaks in order to survive.

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