Speaking in Tangerang, Banten, on Thursday, Riza said that although exchange rate fluctuations present challenges, they do not pose a systemic threat to domestic industrial performance.
"Currently, domestic industry mainly spends in rupiah, so it is not a major problem. At most, some raw materials are purchased in US dollars," he said.
The reassurance came as the rupiah remained under pressure. On Thursday afternoon, the currency closed 0.46 percent lower at Rp18,049 per US dollar, compared with its previous close of Rp17,966.
Despite his overall optimism, Riza acknowledged that several sectors remain vulnerable. Industries that rely heavily on foreign supply chains continue to face challenges, as imported raw materials are generally priced in US dollars.
To reduce the impact of volatility in the US dollar, the government is promoting greater currency diversification in international trade, particularly through Local Currency Settlement (LCS) arrangements.
Riza highlighted Indonesia's growing use of the Chinese renminbi (RMB) in bilateral trade as a strategic hedge against currency risks.
"If a third of our trade balance is denominated in renminbi, for example, the impact of the US dollar can be anticipated," he explained.
In addition, the Ministry of Industry has prepared mitigation measures aimed at protecting production activities from exchange rate shocks.
Riza said the ministry continues to maintain close communication with industry players to address supply chain disruptions and sudden increases in production costs.
"We have taken mitigation measures so that we are not significantly affected by the rise or fall of the rupiah exchange rate," he said.
"Whatever it is, we can find a solution," Riza concluded.
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Translator: Ahmad Muzdaffar Fauzan, Yashinta Difa
Editor: Primayanti
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