Rupiah hits Rp18.000 per dollar, dairy industry squeezes costs
Import costs for milk inputs have risen 17%-35%, while producers are holding retail prices amid still-weak purchasing power.
The rupiah touched Rp18.000 per U.S. dollar on Thursday (4/6), its weakest level, drawing broad attention from international media and starting to pressure industries that rely on imports. In the dairy-processing sector, the Indonesian Dairy Processing Industry Association said the weaker exchange rate has directly pushed up the cost of raw materials such as milk powder, vitamins and minerals. AIPS Executive Director Sonny Effendhi said the increase in costs linked to the exchange rate has reached 17%-35%. Producers have not yet raised consumer prices because purchasing power is seen as not having recovered, so companies are focusing on internal efficiency measures. APSPI Chairman Agus Warsito added that about 80% of the dairy industry’s raw materials are still imported, meaning a high exchange rate is also disrupting business expansion and plans to import pregnant dairy cattle.
Earlier in this story
- Jun 10DEN urges Prabowo to make MBG more efficient as rupiah weakens
- Jun 7Rupiah hits Rp18.000 per dollar, weakest on record
- Jun 6Rupiah hits record low of Rp18.050 per dollar, import pressure rises
- Jun 6Rupiah breaches 18,015 per dollar as IHSG falls 3.04%
- Jun 5Rupiah hits Rp18.000 per dollar, dairy industry squeezes costsreading now
- Jun 5IHSG closes down 4.2% at 5,594.77 at week’s end
- Jun 5Rupiah hits Rp 18.015 per dollar as DPR urges quick action