THE EFFECT OF EXCHANGE RATE FLUCTUATIONS ON THE PRICES OF INDONESIAN IMPORTED COMMODITIES
Abstract
This study aims to analyze the effect of rupiah exchange rate fluctuations on imported commodity prices in Indonesia. The method used is a literature study with a descriptive qualitative approach based on the results of previous research for the period 2017–2024. The analysis results show that rupiah depreciation has a direct impact on increasing imported commodity prices, especially in sectors dependent on foreign raw materials such as the manufacturing, pharmaceutical, and energy industries. Conversely, rupiah appreciation tends to lower import prices and suppress inflation. However, excessive appreciation can reduce export competitiveness. This study also emphasizes the importance of synergistic monetary and fiscal policies in maintaining exchange rate stability and encouraging import substitution. Thus, exchange rate stability is a key factor in maintaining a balance between economic growth, price stability, and national competitiveness.
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