Rupiah Declining, Entrepreneurs Prepare Strategies
By : Ridwan And Aldi Firhand. A | Tuesday, July 17 2018 - 22:35 IWST
INDUSTRY.co.id - Jakarta, Bank Indonesia (BI) has released the results of a survey of business activities in the second quarter of 2018. BI exposure also shows a number of sectors exposed to the rupiah exchange rate.
Chairman of the Chamber of Commerce and Industry (Kadin) Rosan P. Roeslani said, one of the strategies undertaken exposed businesses to avoid price increasing that will reduce the profit margin.
Nevertheless, Rosan acknowledged an industry that began to plan to review the price of its products. The example mentioned is the food and beverage industry.
"Industries that contain lots of imported raw materials, it is possible to review the price again," explained Rosan in Jakarta, Tuesday (17/07/2018).
Just like the BI survey, Kadin Indonesia assessed the textile, chemical and food & beverage industries as the sectors most affected by the weakening of the national exchange rate because of still dependent on imported raw materials.
The BI survey also showed an increase in sales performance, which stood at 16.5% (YoY), a significant increase from 4.1% (YoY) in April 2018.
According to Rosan, the positive trend can be a reference for business actors to develop business. In Rosan's view, entrepreneurs in planning expansions consider the demand side of the market rather than the condition of the exchange rate or the increase in loan interest rates.
Another finding of Bank Indonesia's business activity survey is the positive movement in utilization of used production capacity in second quarter of 2018. The data is slipping the signs of economic improvement which is getting better. The utility value in the second quarter of 2018 reached 78.40%, up from 77.01% in the same period in 2017.