The high rupiah exchange rate due to the recent geopolitical conflict can increase the burden on micro, small and medium enterprises (MSMEs) and housewives.
The reason is, the increasing exchange rate of the rupiah against the dollar will definitely have an impact on greater expenditure costs.
The current depreciation of the rupiah due to the Iran-Israel conflict has had an impact on increasing production costs, thereby increasing product prices.
Previously MSMEs used more local resources, but now trade transactions are increasingly open so that many MSMEs use imported raw materials or even become resellers of products from abroad.