JAKARTA, June 11 (Xinhua) -- The weakening Indonesian rupiah against the U.S. dollar is taking a toll on the country's manufacturing sector, which remains heavily reliant on imported raw materials, a prominent business association said on Thursday.

Shinta Kamdani, chairwoman of the Indonesian Employers' Association, told Xinhua that surging costs for raw materials have driven up overall production expenses. Adding to the strain, businesses are simultaneously grappling with elevated logistics and energy costs.

"Businesses are currently facing multi-layered, externally driven cost pressures," she said. "Especially for the manufacturing sector, the weakening rupiah is affecting the production sector. The impact is becoming increasingly significant."

The broader economic fallout has left companies struggling to expand as eroding profit margins necessitate tighter cash flow management. In light of these challenges, the chairwoman urged authorities to step up efforts to stabilize the rupiah and restore market confidence.