Jakarta, CNBC Indonesia – The Rupiah weakened again after strengthening yesterday, Monday (6/11/2023) and today, Tuesday (7/11/2023) back to IDR 15,600 per US dollar. The Rupiah was even close to reaching IDR 16,000 per US dollar. It is feared that the movement of the rupiah will trigger an increase in car prices in the country. Is it true?
Chief Operating Officer of PT Hyundai Motors Indonesia (HMID) Fransiscus Soerjopranoto said that at this time his party would not increase car prices.
“We know that the dollar almost reached Rp. 16,000, around Rp. 15,800 – Rp. 15,900, but now it has dropped back to around Rp. 15,500 – Rp. 15,600. Automotive players don’t immediately raise prices for the dollar, but wait for certain periods, especially towards the end of the year like this. ,” he said, Tuesday (7/11/2023).
The policy of holding prices towards the end of the year is closely related to manufacturers’ policies which often pursue sales targets. Moreover, the Association of Indonesian Automotive Industries (Gaikindo) has a large car sales target this year.
“Gaikindo has a target market of 1 million, it needs ATPM’s help to sell more in November and December so it is not appropriate at the end of this year in order to support the automotive market in Indonesia,” said Soerjo.
His party has also tried to restrain the increase in car prices even though the imported components that use US dollars in this industry are quite large.
“Every company has a facility called hedging or protection against currency, especially in the automotive industry, the US Dollar is the most abundant. We hope that losses arising from the increase in the US Dollar will be reduced,” said Soerjo.
Apart from Hyundai, another car manufacturer, namely Daihatsu, has no plans to increase prices due to the increase in the dollar exchange rate.
“Currently there are no (plans to increase prices), not yet,” said Marketing Director & Corporate Planning and Communication Director of Astra Daihatsu Motor Sri Agung Handayani in Tokyo, Japan, Thursday (26/10/23).
Even though they bear the increase in raw material costs, especially for imported raw materials, manufacturers cannot immediately increase the selling price of cars. The reason is, there are many factors that determine the price increase.
“It’s only been a few weeks since we can’t just have a single exchange rate determine, for example, the price of material costs, we can’t adjust it that quickly in a short time because we have commitments with customers,” he concluded.
[Gambas:Video CNBC]
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