Suzuki Calls Continuously Weakening Rupiah a Double-Edged Sword

KatadataOTO – The rupiah exchange rate against the United States dollar has weakened again. On Tuesday (22/04) afternoon, it reached Rp 16,859 per dollar.

This figure is down 53 points or minus 0.32 percent compared to the previous day's closing trade.

SIS (Suzuki Indomobil Sales) sees this condition as a double-edged sword. Firstly, they find it challenging.

“If this continues for a long time, there will certainly be subsequent impacts that we need to study further,” said Dony Saputra, Deputy Managing Director 4W SIS, when met in Karawang on Tuesday (22/04).

Photo : KatadataOTO

Dony explained that although 80 percent of Suzuki's sales are local products, there are still a number of components brought in from abroad.

Therefore, the weakening of the rupiah against the dollar, which has been ongoing since the beginning of the month, will certainly make things difficult for the Japanese manufacturer.

“Does this impact production costs or not? Will it also drive up distribution costs or not? We will have to see,” Dony continued.

Nevertheless, the weakening of the rupiah against the US dollar is also said to bring benefits to Suzuki Indomobil Sales.

“On the other hand, we are also exporters, and a condition like this actually encourages Suzuki's revenue to grow and be higher,” he said.

Thus, the current situation is actually a blessing in disguise. It can bring a breath of fresh air for them.

For your information, Suzuki ships several products to a number of countries. Take for example Mexico and its surrounding areas for the XL7, Ertiga, and Carry.

So, the weakening of the rupiah against the US dollar has actually increased their income recently.

“This also drives the growth of our receipts or revenue related to the exports we carry out,” Dony affirmed.

Photo : PT SIS

Just a reminder, if the rupiah exchange rate against the US dollar continues to weaken, it will have many impacts on the national automotive industry.

For example, an increase in the price of new cars and motorcycles. Because manufacturers have to adjust to production costs.

If this continues, people's purchasing power may also decline. Thus, sales of four-wheeled and two-wheeled vehicles may be less than optimal in 2025.