23 October 2025 (closed)
Jakarta Composite Index (8,274.35) +120.80 +1.49%
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Our Financial Columns offer analyses of subjects related to the Indonesian financial markets. Together, these columns - that also have high news value in the current state of the Indonesian economy - intend to provide a clear and detailed picture regarding the structure and performance of these markets.
In our previous report we expected to witness a calmer international context as the US Federal Reserve was assumed (by markets and most analysts) to have ended its monetary tightening phase.
Last month, we saw that the Indonesian rupiah started appreciating when the world was focused on the US Federal Reserve’s response to the collapse of three American banks (followed by trouble at Credit Suisse).
There are analysts who believe that the international banking crisis that started in the second week of March 2023 is just the beginning of more to come. After Credit Suisse was affected amid the global decline of confidence in the banking sector, some now fear that German bank Deutsche Bank could be the next victim. What does this mean for the Indonesian rupiah?
There currently are some major concerns over an international banking crisis after three American banks collapsed in March 2023 (Silicon Valley Bank, Signature Bank, and Silvergate Bank; all catering largely to the tech sector), while it necessitated an acquisition by rival UBS to prevent Switzerland-based global investment bank Credit Suisse from collapsing. This brings back the haunting memories of the 2008 financial crisis.
