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Rupiah Weakens, Local Fruit Producers Reap Benefits

18 December 2014 14:32 WIB

TEMPO/Iqbal Lubis

TEMPO.CO, Jakarta - Despite the weakening Rupiah exchange rate towards the US Dollar, local fruit producers were able to gain profit. "Consumers are predicted to switch to local fruits as imported fruit prices skyrocketed," said Tutum Rahanta, Deputy Chairman of Indonesian Retail Company Association (APRINDO) on Wednesday, December 17, 2014.

He said that products affected by the exchange rate fluctuation are categorized into two categories. The first category is high value products, which cannot be produced in Indonesia, including products that require imported raw materials. The second category is products that can be produced domestically. However, quality issues had caused consumers to prefer imported products.

In response to the condition, Tutum asked the government to improve the domestic industry sectors, especially agro business.

Satria Hamid, Head of Public Affairs for Carrefour Indonesia, admitted that the price increase of imported goods will significantly affect the sales of imported fresh fruits and vegetables. He added that the price increase of imported goods can reach up to 10 to 15 percent.

PINGIT ARIA | URSULA FLORENE SONIA



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