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JAKARTA — The weakening rupiah is beginning to bite into household budgets across Indonesia, with prices of televisions, air conditioners, and other imported electronics rising sharply in May.
Retailers report that sales have plunged as consumers delay purchases, underscoring the vulnerability of the domestic market to currency swings.
Currency Pressure
The rupiah closed at Rp17,529 per U.S. dollar on May 13, 2026, marking a 5.1 percent decline since January and nearly 19 percent weaker than five years ago.
For an economy heavily reliant on imported components, the depreciation translates directly into higher costs for manufacturers and distributors.
Electronics are particularly exposed. Semiconductors, display panels, sensors, and capacitors all critical parts of televisions, smartphones, and laptops are sourced abroad and paid for in dollars.
As the currency weakens, procurement costs rise, leaving companies with little choice but to adjust retail prices.
Rising Prices, Falling Sales
Retailers say prices of televisions and air conditioners have climbed 2–5 percent since early May.
Other digital household devices are also affected. The impact on sales has been immediate: distributors report declines of up to 50 percent, as middle- and lower-income households postpone purchases.
“Consumers are holding back, waiting to see if the rupiah stabilizes,” one distributor “But if the weakness continues, prices will only go higher.”
Manufacturers and retailers are attempting to cushion the blow. Many are relying on older inventory purchased at lower exchange rates, delaying the full impact of the depreciation.
Others are cutting internal costs to avoid passing on the burden to consumers.
Competition in the electronics market remains fierce, forcing companies to raise prices cautiously.
Yet industry leaders warn that if the rupiah remains weak, new imports will inevitably arrive at higher costs, pushing prices further upward in the coming quarter.
The Indonesian Electronics Producers Association (Apkonik) has urged the government to accelerate efforts to strengthen domestic supply chains.
Increasing local content (TKDN) in electronics manufacturing, they argue, is essential to reduce reliance on imported components and shield the industry from currency volatility.
Without such measures, households will remain exposed to global market swings. “We need stronger domestic production capacity,”
Apkonik said in a statement. “Otherwise, every time the rupiah weakens, consumers will feel the pain directly.”
For now, households face a difficult choice: buy electronics at higher prices or wait in hope of stabilization.
With inflationary pressures mounting, the rupiah’s trajectory will be closely watched by policymakers and consumers alike.
If the currency continues to slide, the pain will deepen not only for families trying to buy televisions or air conditioners, but for an economy still striving to build resilience against external shocks.
