SKYROCKETING PRICES
Compared with many other small businesses, Supriyanto considers himself fortunate as his two biggest expenses – 2 million rupiah on monthly rent and around 1 million rupiah in wages for a freelance second barber – have remained largely unchanged.
Even so, he has had to tighten his own belt.
„We have to be frugal in times like this. Less eating chicken and more eggs,” Supriyanto said with a bitter smile.
Many other businesses in the country, however, have faced a significant hit.
In Indonesia, global pressures, such as the conflict in the Middle East, have been compounded by a weakening rupiah, which has lost as much as 7.8 per cent of its value against the United States dollar over the past year. On Jun 8, the currency hit a record low of 18,190 rupiah to the dollar, far weaker than the government’s 2026 budget assumption of 16,500.
According to the Indonesian Central Bank’s Strategic Food Price Information Centre, the price of cooking oil has climbed from about 19,000 rupiah per kilogram before the US-Iran conflict escalated in late February to around 20,500 rupiah today.
Over the same period, red chilli prices have risen from 46,500 rupiah to 51,000 rupiah per kilogram, while soybeans have jumped from about 9,000 rupiah to 13,000 rupiah per kilogram.
