One of the inflation effect that is negative is the reduction in the value of real money. This can affect the company in many ways because the costs for operating business activities increase while margins are getting depressed. This often requires businesses to raise prices for customers.
A high rate of inflation means that unless income increases at the same rate, the consumer's situation will be difficult. This leads to lower levels of consumer spending and decreased sales for businesses. Because spending exceeds the production of goods and services, the supply of rupiah in an economy exceeds the amount needed for financial transactions.