KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society
Vol. 3 No. 9 (2026): Kisa Institute : September 2026

EXCHANGE RATE FLUCTUATION AND EXPORT COMPETITIVENESS OF LOCAL INDUSTRIES

Arif Budi Raharja (STIE YKP, Yogyakarta)
Raden Roro Fatma Sari (Universitas Sangga Buana YPKP)



Article Info

Publish Date
13 Sep 2026

Abstract

Background: A weaker rupiah can improve the foreign-currency price of Indonesian exports, but the advantage is conditional. Firms that depend heavily on imported components, machinery or foreign- currency debt can experience higher costs at the same time that export receipts increase. Aims: This article examines the mechanisms that connect the topic to organizational or policy performance and identifies the conditions that make those mechanisms stronger or weaker. Research Method: A structured narrative review integrates peer-reviewed research with authoritative policy, statistical, and professional sources, including Yanti et al. (2026); Sumiyati (2020). Sources are coded by outcome, mechanism, boundary condition, and practical implication. Results and Conclusion: The synthesis indicates that outcomes are heterogeneous. The most important distinction is between the level of the exchange rate and its volatility. Predictable depreciation can be incorporated into contracts and pricing more easily than abrupt two-way movement that changes margins between quotation, production and settlement. Six recurring themes show that implementation quality, information, capability, and institutional context frequently matter as much as the headline policy or technology. Contribution: The article offers an evidence-based framework for local exporters and manufacturing firms that translates the literature into decision principles without claiming primary data that were not collected.

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Journal Info

Abbrev

kisainstitute

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

KISA INSTITUE : Journal of Economics, Accounting, Business, Management, Engineering and Society is published by Kisa Institute plays a key role in advancing multidisciplinary knowledge. With monthly outputs, the journal serves as a vibrant platform to present and develop our understanding of various ...