Indonesia’s Jakarta Composite Index weakened 0.28 percent to 5,251 at 09:38 WIB on Wednesday, while the rupiah depreciated to Rp 18,170 per US dollar. The pressure on the stock market has continued into the morning session.
Foreign and domestic factors
FX analyst Elvan Chandra Widyatama attributed the rupiah’s weakness to both domestic and foreign factors. He pointed to the US dollar index and developments in world crude oil prices, both of which affect state foreign reserves. MSCI-related sentiment was cited as a driver of foreign selling from the Indonesian capital market, and domestic investors are attempting to counter the downtrend in the IHSG.
Widyatama, speaking to CNBC Indonesia, said the rupiah could strengthen toward the end of 2026. He expects it to trade between Rp 17,800 and Rp 18,200 per US dollar. The range is his own forecast and not a market level.
Outlook for the rupiah
Related: Rupiah slips to Rp18,105 as BI says it stays in market · Rupiah slips past 18,100 per dollar on fund outflows
