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The rupiah is among Asian currencies that have weakened against the US dollar this year. It’s a double-edged sword for workers, and industries that import raw materials will be hit, economists say.
File photo of office workers in Singapore's central business district. (File photo: iStock)
JAKARTA: Indian national Avinash Rao, 38, is more cautious about his spending these days.
The tax advisor, who works in Jakarta, is paid in rupiah and remits money to his family in India regularly.
With Indonesia’s currency weakening in recent months, Mr Rao has had to cough up more of his salary in order for his family to receive the same amount in Indian rupees as before.
“A few months ago, I used to get 1 Indian rupee if I paid 181 Indonesian rupiah,” he said.
“Since the rupiah depreciated against the United States dollar and other major currencies, I need to spend 195 rupiah to purchase 1 Indian rupee.”
Workers who get paid in US dollars, on the other hand, are not complaining.
Malaysian expatriate Letchumi, who works in the pulp and paper sector and goes by one name, told CNA: “I do benefit given that USD is stronger now.”
In Indonesia, some have cheered while others' pockets have been hit as the rupiah sank to a four-year low last week against the US dollar as the market reopened after 10 days of Idul Fitri holidays.
