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

Exchange Rate Pass-Through and Export Pricing Decisions in Indonesian Manufacturing Firms

Arif Budi Raharja (Universitas Mathla'
ul Anwar, Banten)

Maya Ariyanti (Telkom University)



Article Info

Publish Date
30 Sep 2026

Abstract

This integrative review examines the following Indonesia-focused question: How do exchange-rate changes reach export prices, and what firm-level pricing decisions determine whether Indonesian manufacturers absorb or pass those changes to foreign buyers? The analysis treats exchange rate pass-through as a conditional economic mechanism rather than a stand-alone headline indicator and evaluates how it interacts with export pricing. For exchange rate pass-through, peer-reviewed research is read together with current official statistical and policy material, with Indonesia-specific evidence given priority and international studies used to clarify mechanisms. Across the reviewed material, the effect of exchange rate pass-through varies with exposure, timing, market structure, institutional arrangements, and the capacity of decision makers to adjust. The article therefore develops a mechanism-based interpretation that distinguishes first-round transmission, behavioral response, and boundary conditions for export pricing. No primary survey, interview, firm observation, or regression estimate is manufactured for this exchange rate pass-through conceptual review; empirical claims remain attributed to their original sources. The resulting exchange rate pass-through framework supports differentiated measurement and identifies an Indonesia-specific research agenda for testing the proposed channels with more granular data.

Copyrights © 2026






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 ...