THE EFFECT OF RUPIAH DEPRECIATION ON MOTORCYCLE SPARE PART RETAIL BUSINESSES

Abstract

This research aimed to analyze the effects of rupiah depreciation on the prices of motorcycle spare parts to find the way to encourage Indonesia’s industrial sector development and to find out the way to encourage automotive spare parts retail businesses to create attractive strategies to deal with this condition. This research will be focused on the effect of rupiah depreciation on the prices of motorcycle spare parts as the most demanded mode of transportation. This research will limit on the prices of motorcycle spare parts in Harapan Indah, Bekasi area. The objectives of the study are to identify and analyze the effects of rupiah depreciation on spare parts prices, the effect of rupiah depreciation to motorcycle spare part retail businesses, and how Indonesian government and spare parts retailers face the current economic condition. Researcher used qualitative method to gain deeper understanding. As the result, rupiah depreciation does give effects to the spare parts prices in different way, although the production cost in spare parts industries increase, it does not affect directly to the retailer or the price in the market