The Impact of Rupiah Depreciation on Household Purchasing Power, Food Affordability, and Nutritional Vulnerability: Evidence from Balikpapan, East Kalimantan

Abstract

This study aims to examine the impact of rupiah depreciation on household purchasing power, food affordability, and nutritional vulnerability in Balikpapan, East Kalimantan, Indonesia. Currency depreciation may increase the cost of imported goods, production inputs, transportation, and food distribution, potentially contributing to rising consumer prices and reducing households’ ability to meet their basic nutritional needs. These economic pressures may disproportionately affect low- and middle-income households, particularly those with limited income flexibility and high expenditure shares allocated to food consumption. This study proposes a quantitative research approach using household-level survey data supported by secondary information on exchange rate movements, food prices, and regional economic conditions. The analysis focuses on the relationship between rupiah depreciation, household purchasing power, and food affordability, while examining nutritional vulnerability as an important public health outcome. Descriptive statistical analysis, correlation analysis, and Structural Equation Modeling (SEM-PLS) are proposed to evaluate the relationships among the research variables. The study also considers household income, food expenditure patterns, dietary diversity, and changes in food consumption as indicators for understanding the transmission of macroeconomic pressures into household nutritional conditions. By integrating macroeconomic analysis with public health indicators, this research is expected to provide a broader understanding of how exchange rate instability may influence food access and nutritional well-being at the household level. The findings are expected to contribute to the development of local policies concerning food affordability, household economic resilience, and public health protection, particularly for vulnerable communities in urban areas. This study highlights the importance of integrating economic stability and food security strategies into public health policy to reduce the potential nutritional consequences of macroeconomic fluctuations.