REPUBLIKA.CO.ID, JAKARTA - Indonesian Food & Beverage Association (Gapmmi) complained about the weakening IDR against USD. Gapmmi now plans to rise the price of food products and beverages.

Chairman of Gapmmi, Adhi S Lukman said that food industry has suffered twice, firstly when the fuel price hiked and secondly the weakening IDR which its exchang rate has touched 11,400 IDR per USD last week end.

"In fact, most of raw materials for food and beverage industry are still imported," Lukman said on Sunday.  

Imports of food materials like milk and sugar reach 70 percent and 60 percent. Lukman said food industry must increase its product price to survive.

"We still watch closely the fluctuating IDR then we will decide the price increase next week," he added. 

Another option is reducing or changing the product packaging to lower the cost of production. Lukman expects the government to control the IDR exchange rate. He said that the economic package announced by the government last week was economic stimulus to anticipate the weakening IDR and the balance of trade deficit.  

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