The weakening rupiah exchange rate against the US dollar has put significant pressure on the national textile industry. The exchange rate increase that occurred on Thursday (May 14, 2026) has resulted in a halt in operational costs, especially for producers still reliant on imported raw materials. This situation has prompted industry players to begin adjusting product selling prices to maintain business continuity.
Farhan Aqil Syauqi, Secretary General of the Indonesian Filament Fiber and Yarn Producers Association (APSyFI), stated that the greatest pressure is felt on polyester products. This is because primary raw materials such as mono ethylene glycol (MEG) and paraxylene (PX) still dominate the imported supply, making them highly sensitive to changes in the dollar exchange rate.
Despite rising production costs, the industry continues to maintain production activities to ensure the supply chain is not disrupted. According to Aqil, halting factory operations would pose a greater risk than continuing production at higher costs. Therefore, adjusting prices to consumers is an unavoidable step to cover the increased production costs.
In addition to the weakening rupiah, rising global crude oil prices have also exacerbated pressure on the upstream textile sector. Although market demand remains stable, industry players are concerned that profit margins will shrink further if selling prices continue to rise over the long term.
To maintain business continuity, APSyFI is currently reevaluating various existing cooperation agreements. One strategy being pursued is contract renegotiations to provide the company with more flexible funding amidst uncertain economic conditions.
Meanwhile, the government is urging the public and players to remain calm in the face of exchange rate fluctuations. Finance Minister Purbaya Yudhi Sadewa assessed that Indonesia's current economic fundamentals are still strong enough to withstand external pressures.
The government also emphasized that the current national economic conditions are significantly different from the 1998 crisis. According to Purbaya, a stronger economic foundation makes Indonesia better able to maintain stability and restore the business climate in the event of market turmoil.
Furthermore, the government is providing full support to Bank Indonesia in taking monetary policy measures to maintain rupiah stability. The government is optimistic that policy synergy can help strengthen the national economic fundamentals amid ongoing global pressures.