ULM Economist Highlights Impact of Rupiah Weakening on People’s Purchasing Power
Banjarbaru — The weakening of the rupiah exchange rate against the US dollar has recently become a serious concern for academics at Lambung Mangkurat University (ULM). On April 7, 2025, the rupiah touched a record low of IDR 17,261 per US dollar, before slowly strengthening to IDR 16,892.50 the following day based on Wise data. This condition is considered to increase pressure on the national economy, especially people’s purchasing power.
Economist at the ULM Faculty of Economics and Business, Sudirwo, SE, MM, explained that the depreciation of the rupiah automatically has an impact on the increase in the price of imported goods.
“Because many of our products and commodities still depend on imports, the prices of these goods will definitely increase, and the public will feel the impact directly,” he said, Wednesday (4/16/2025).
However, Sudirwo appreciated the Prabowo government’s move to send a delegation to negotiate with the United States government.
“With this meeting, the import tariff to Indonesia of 32 percent was temporarily held, because it has not been implemented. This is a positive step,” he added.
Furthermore, he highlighted the major impact that will be felt by the community, especially in the automotive and electronics sectors, which are largely dependent on imports from America.
“On the other hand, our export products to America have become cheaper. This has made a number of entrepreneurs choose to hold back on sending goods abroad,” he explained.
Meanwhile, Professor of Management Science, FEB ULM, Prof. M. Handry Imansyah, assessed that the weakening of the rupiah has encouraged imported inflation, namely inflation due to the increase in the price of imported goods.
“Many basic necessities such as rice, soybeans, and meat still depend on imports. The increase in these prices will directly impact people’s purchasing power, including consumer goods for the middle to upper class,” explained Handry.
This condition shows that dependence on imports is still a major challenge for the national economy. ULM academics also reminded of the importance of strategic steps to strengthen domestic economic resilience amidst global exchange rate volatility.
