Rupiah hits record low of Rp18.050 per dollar, import pressure rises

The rupiah weakened further against the U.S. dollar and opened Friday (5/6) at Rp18.050 per dollar, after closing the previous day at Rp18.020. The level marked the currency's weakest point on record and raised concerns about higher import costs and fresh pressure on purchasing power. CNBC Indonesia reported that the weaker exchange rate could lift prices of imported food staples such as wheat, soybeans, sugar and milk, as well as nonfood goods including smartphones, laptops and semiconductor components. At the same time, the Ministry of Energy and Mineral Resources is pushing to increase domestic oil production to reduce dependence on imports. Deputy Energy Minister Yuliot Tanjung said the regulatory framework for developing unconventional oil and gas in the Rokan Working Area is targeted for completion by the end of June and set to begin in early July.