18 June 2026 (closed)
Jakarta Composite Index (6,172.34) -48.40 -0.78%
Below is a list with tagged columns and company profiles.
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One of the most important stories for Indonesian markets is the release of MSCI's Annual Market Classification Review. This review is scheduled for release on Tuesday 23 June 2026 (which would be the early morning of Wednesday in Indonesia).
The central bank of Indonesia (Bank Indonesia) is aggressively raising its benchmark interest rate (BI Rate) to support the rupiah rate, while it might also be expecting a significant acceleration in Indonesian inflation after the cabinet raised the price of Pertamax fuel by 32 percent on 10 June 2026.
The benchmark stock index of Indonesia (Jakarta Composite Index) soared by 4.12 percent on Monday (15 June 2026) amid surging markets after news broke that the United States and Iran are to sign a peace deal (that also involves the Israeli conflict in Lebanon).
Seeing the fragile rupiah, Bank Indonesia did not want to wait for its next scheduled monthly monetary policy meeting on 17-18 June 2026. Instead, the central bank of Indonesia raised its benchmark interest rate (BI Rate) by 25 basis points (bps) to 5.50 percent on Tuesday 9 June 2025.
In line with expectations, Bank Indonesia's foreign exchange reserves recorded a decline last month. On Monday (8 June 2026), the central bank of Indonesia stated that these reserves fell USD $1.3 billion, settling at USD $144.9 billion at the end of May 2026. This marks the lowest level of foreign exchange reserves since June 2024.
Although losses were somewhat pared later on during the trading day, the Indonesian rupiah and benchmark stock index (Jakarta Composite Index) were still under plenty of pressure on Thursday (04 June 2026). The rupiah in fact passed beyond the psychological boundary of IDR 18,000 per US dollar, extending its record-low streak.
Bank Indonesia decided to raise its benchmark interest rate (BI Rate) from 4.75 percent to 5.25 percent in an effort to support the fragile rupiah rate that had hit a record low against the US dollar one day earlier (trading at around IDR 17,700 per US dollar). This is an aggressive move but one that does indeed support the Indonesian currency.
On Monday (04 May 2026), Indonesia Investments released the April 2026 edition of its monthly report. In this report we discuss key economic, political and social developments that occurred in Indonesia in April 2026.
On 4 February 2026, Indonesia Investments released the January 2026 edition of its monthly report. In this report we present analyses of a selection of economic, political and social matters that were relevant in the month of January 2026.
The central bank of Indonesia (Bank Indonesia) surprised markets by cutting its benchmark interest rate by 25 basis points to 4.75 percent at the September 2025 monetary policy meeting. It was the sixth rate cut in a monetary easing cycle that started in September 2024.
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Concerns about Indonesia's current account balance increased after Bank Indonesia announced last week that the country's current account deficit widened to USD $8.02 billion, or 3.0 percent of gross domestic product (GDP), in the second quarter of 2018. It is Indonesia's highest quarterly deficit since Q3-2014, thus putting additional pressures on the rupiah exchange rate.
There are doubts whether Indonesia's gross domestic product (GDP) growth can reach 5.2 percent year-on-year (y/y) in full-year 2018 as Indonesia is experiencing a couple of major challenges. Challenges include the global trade war, the fragile rupiah, Bank Indonesia's higher benchmark interest rate, the current account deficit, and political tensions ahead of the 2019 legislative and presidential elections. Currently, Indonesia Investments' forecast for Indonesia's economic growth is set at 5.2 percent (y/y) in 2018.
Chief executive officers (CEOs) in Indonesia have become slightly less optimistic about the Indonesian economy and politics. This makes sense considering the presence of simmering global trade tensions, sharp rupiah depreciation against the US dollar, and Bank Indonesia's recent series of interest rate hikes.
One of the national industries that is heavily affected by the weak rupiah exchange rate is Indonesia's pharmaceutical industry. Considering around 90 percent of raw materials in the pharmaceutical industry need to be imported from abroad (in US dollars), production costs rise sharply in times of significant rupiah depreciation. It is estimated that materials imported from abroad account for about 75 percent of pharmaceutical companies' total production costs.
In an ad hoc press conference on Thursday (26/04) Bank Indonesia Governor Agus Martowardojo provided an update on the performance of the Indonesian rupiah as well as an update on the strategies that are - or can be - used by the central bank to safeguard a stable rupiah. When the ad hoc press conference was announced we initially expected to see an interest rate hike. However, based on a statement from Bank Indonesia, this seems to be the last option the central bank wants to use.
Indonesia's benchmark Jakarta Composite Index fell 1.24 percent to 6,229.63 points on Tuesday (24/04). The performance of Indonesian stocks were in line with the general trend in Southeast Asia. Due to rising US treasury yields (touching nearly 3 percent, its highest level since January 2014) investors withdraw their funds from riskier assets in emerging markets. Concerns over US inflation and the fiscal deficit are behind the rising US treasury yield.
The central bank of Indonesia (Bank Indonesia) said the country's current account deficit remained under control, albeit widening in the last quarter of 2017. Indonesia's current account deficit reached USD $5.8 billion or 2.2 percent of gross domestic product (GDP) in Q4-2017 (up from a deficit of USD $4.6 billion or 1.7 percent of GDP in the preceding quarter).
Although the Indonesian rupiah has been strengthening against the US dollar since mid-December 2017, the rupiah may encounter serious pressures in the year 2018 amid US tax reforms, the US Federal Reserve's further monetary tightening, and unstable geopolitics. Meanwhile, Indonesian exports are expected to grow, but only in the range of 5-6 percent year-on-year (unlike 2017 when the nation's exports rebounded 17 percent).
Earlier this week, the central banks of Indonesia (Bank Indonesia), Malaysia (Bank Negara Malaysia), Thailand (Bank of Thailand) jointly announced the launch of the local currency settlement framework. This framework aims at boosting the use of local currencies in transactions (specifically related to trade and investment) conducted between Indonesia, Malaysia and Thailand in an effort to reduce these countries' dependence on the US dollar.
The Bank Indonesia (BI) Board of Governors agreed to hold the BI 7-day Reverse Repo Rate at 4.25 percent, while maintaining the deposit facility and lending facility rates at 3.50 percent and 5.00 percent, respectively, effective per 20 October 2017. The decision was in line with efforts to maintain macroeconomic and financial system stability, while stimulating the domestic economic recovery.
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