Jakarta. Indonesian Chamber of Commerce and Industry (Kadin) are warning that the rupiah’s continued depreciation against the US dollar could lead to layoffs if the currency weakness persists, as companies face rising operational and production costs.

The rupiah weakened to a record low beyond Rp 17,667 per US dollar on Monday afternoon, deepening concerns among businesses already under pressure from rising import and logistics costs.

Kadin Deputy Chairman for Regional Autonomy Sarman Simanjorang said the rupiah’s slide had become a serious warning signal for the business sector.

“If we talk about how far businesses can withstand the rupiah’s depreciation, once it touched Rp 17,000 per dollar it already became a full warning alarm,” Sarman told Beritasatu.com on Monday.

He said the weaker currency was affecting business confidence and creating uncertainty, while directly increasing corporate cash-flow pressures through higher costs for imported raw materials, logistics, and distribution.

According to Sarman, prolonged rupiah weakness could eventually force companies to adjust prices, potentially weakening consumer purchasing power and adding inflationary pressure to the economy.

“If this continues for a long time, the ability of businesses to survive will become increasingly limited,” he said.

Small and medium-sized enterprises are seen as particularly vulnerable because they are highly exposed to rising raw material and transportation costs while operating in a market still sensitive to price increases.

The warning comes as Indonesia is already seeing a rise in job losses. The Manpower Ministry reported that 15,425 workers were laid off between January and April 2026. The figure marked a sharp decline of around 61.3% compared with the same period in 2025, when the number of laid-off workers reached 39,902. 

Kadin also urged the government to immediately operationalize its recently established layoff mitigation task force to help companies anticipate potential workforce reductions.

“The layoff mitigation task force formed by the government must be followed up immediately so it can help businesses anticipate workforce rationalization,” Sarman said.

Despite the concerns, business leaders said they supported government efforts to stabilize the economy and strengthen the rupiah amid ongoing market volatility.

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