Rupiah Weakens to Rp17,796, Layoff Risk Increases in the Industrial Sector

JAKARTA, Jakartaweekly.com — The rupiah exchange rate against the US dollar weakened again at the close of trading today, Tuesday, May 26, 2026. This condition increases the risk of layoffs domestically.

The rupiah was traded at Rp17,796 at the close of trading, weakening by 52 points compared to Monday’s closing on May 25, 2026. In trading on Wednesday, May 26, 2026, the rupiah is expected to move in a volatile range. However, it is projected to weaken within the range of Rp17,790–Rp17,850.

Economic, Money Market, and Commodity Analyst Ibrahim Assuaibi said that a market confidence crisis, which has the potential to develop into an economic crisis, is beginning to emerge due to the weakening of the rupiah against the US dollar.

According to him, uncertainty in the exchange rate, with no clear direction of recovery, has impacted rising production costs for companies, particularly industries reliant on imported raw materials and export markets.

“As a result, the risk of layoffs [PHK] is increasing,” he told reporters on Tuesday, May 26, 2026.

He added that the weakening rupiah, coupled with global geopolitical conflicts, has also triggered a surge in layoffs over the past month. Several companies, he said, have begun implementing efficiency measures and shutting down operations.

In addition to the rupiah exchange rate, many companies are also facing increased production cost pressures due to rising non-subsidized industrial fuel prices, which have increased amid global geopolitical conditions.

Ibrahim cited an example of a company that has ceased operations, namely the electronics factory PT Xacti Indonesia in Depok, West Java. As a result, around 350 workers lost their jobs.

Beyond the electronics sector, pressure is also being felt in the automotive industry. Rising vehicle prices due to expensive imported components are starting to weigh on market demand. In Sidoarjo, East Java, CV Asri, which operates in the automotive sector, reportedly laid off around 200 workers due to declining sales.

“Pressure is also beginning to be felt in the textile, garment, and footwear industries,” he said.

Ibrahim estimates that potential layoffs in the formal industrial sector could reach 9,000 workers over the next three months. Meanwhile, the Ministry of Manpower recorded 15,425 workers affected by layoffs between January and April 2026, and large-scale layoffs are expected to continue in the coming months.