Trump’s policy of raising import tariffs on several countries has also had a major influence on the Indonesian economy. It turns out that this policy has also significantly affected the rupiah exchange rate which has weakened in recent weeks.
Currently, the rupiah exchange rate has even reached Rp 17,000 per US dollar. This figure almost surpasses the peak of the monetary crisis in 1998. Even when compared to the Covid 2020 pandemic, the rupiah exchange rate is weaker today. So that the industrial sector that exports and imports in Indonesia will get a significant impact including on this company, PT Benteng Mas Persada.
The most likely impact of the weakening rupiah exchange rate on industry is that COGS will rise because imported raw materials or machines will be much more expensive. As a result, the selling price of domestic products becomes more expensive and mass layoffs of employees in the industrial sector.
In addition, there is also a positive impact of the decline in the rupiah exchange rate, which means that finished products are cheaper for overseas consumers so that they can increase export figures.
Moreover, this event impacted the industrial sector that has a market in the US as the falling value of the rupiah caused import tariffs to rise. The increase in import tariffs caused potential buyers to cancel their purchases.
Therefore, there are several strategies that PT Benteng Mas Persada can use to avoid these impacts. Starting from reducing imports and using raw materials from within the country, strengthening cooperation in existing foreign markets, exploring non-traditional market countries, utilizing social media and company websites, building relationships with local marketing agents in exporting countries, to participating in international trade shows.
One of the strategies that has been carried out by PT Benteng Mas Persada is to participate in the International Exhibition Trade Expo in 2024 and APAS SHOW BRAZIL 2024. In addition, it also managed to export to several countries in non-traditional markets such as Qatar, Guyana and Tahiti in the period 2023 to 2025. So that the strategies that have been carried out can minimize the possible impact that will occur on the company.