Rupiah weakens, businesses delay expansion, seek new markets
Firms are also lengthening production timelines, booking ships earlier and diversifying export routes to reduce risk.
The rupiah's weakness has prompted businesses in Indonesia to hold back expansion plans, trim nonurgent spending and look for new export markets. Pressure from the U.S. dollar rate, which was said to have already passed Rp18.000 per dollar, is also forcing industry to strengthen foreign-exchange hedges and increase the use of local raw materials. Abdul Sobur, chairman of Himpunan Industri Mebel dan Kerajinan Indonesia, said companies can no longer rely on one or two destination countries and must aggressively seek buyers in Europe, East Asia, Australia and India. To keep operations going, industry players are also adding production buffers and lead time, booking ships earlier and diversifying routes and ports. BPS data cited by CNBC Indonesia showed Indonesia's exports in the first quarter of 2026 reached US$66,85 miliar, with manufacturing contributing US$54,98 miliar, or 82,25 percent of total exports.