Indofood to Adjust Prices if Rupiah Depreciate

Jakarta (Antara Bali) - Food manufacturing company PT Indofood Sukses Makmur (INDF) said it would adjust the prices of its products if the rupiah continued to depreciate against the US dollar.

"We keep monitoring the trend to see if it is a short or a long term. If it is a long term certainly price adjustment will be done," the company's director, Franky Welirang, said here on Friday evening.

He said the depreciation had affected the price of flour which is the main ingredient for the company's products such as cookies, instant noodles and cakes.

"The company has so far imported most of its flour from Australia, Canada, the US, India and Ukraine. If the rupiah continued to depreciate the flour that we buy would be more expensive. Flour meanwhile contributes 70 percent to the company's sales," he said.

Franky however said that the company would not raise the prices of its products too high to make its products remain affordable.

Historically ahead of the post-fasting holiday of Lebaran Franky said there would be a jump in demand for raw materials including flour by 20 percent.

"Two weeks before Lebaran demand may rise up to 20 percent due to increasing demand from industries to make cookies, cakes and other food products," he said. (*/DWA)