Kadin Indonesia continues to pay close attention to developments in global economic conditions, especially those related to the strengthening of the US Dollar and the weakening of the Rupiah exchange rate, following the high interest rates implemented by the Federal Reserve (The Fed) which also led to an increase in interest rates in various countries, including Indonesia.

The weakening of the Rupiah poses a threat to the supply chain, which can lead to higher operational costs, such as raw materials, logistics, and transportation. The weakening exchange rate can also increase the debt burden (especially in US Dollars) and potentially increase inflation.

Chairman of Kadin Indonesia, Arsjad Rasjid urged relevant stakeholders to remain aware of the impact of the exchange rate increase, especially in order to maintain inflation, the competitiveness of businesses, as well as the purchasing power of the community. Prudence also needs to be applied by parties that are highly dependent on the exchange rate, such as importers and debt holders in nominal US dollars.

Facing this situation, Arsjad continued, the business world is expected to take short-term anticipatory steps, such as recalculating business expenses by prioritizing the principle of efficiency, looking for alternative raw materials to reduce dependence on imports, and being careful in realizing decisions to invest and/or develop business.

“Kadin Indonesia also encourages all parties to work together to maintain economic stability and support the steps taken by the government in facing this challenge,” concluded Arsjad.