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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A remarkable transition occurred in Indonesia’s bond market, specifically referring to the ownership of Indonesian government bonds (Surat Berharga Negara, or SBN). Whereas one decade ago foreign investors held nearly 40 percent of this debt paper, this figure tumbled to 13-14 percent in the present.
A draft law that would amend Law Number 4 of Year 2023 on the Development and Strengthening of the Financial Sector (henceforth: RUU No. 4/2023 P2SK) is currently being discussed by Indonesia's House of Representatives (DPR) and cabinet. If approved, this law would somewhat change the role and power of the central bank (Bank Indonesia).
The reason why we frequently discuss Indonesia’s financial markets (especially the stock and money markets) in our monthly reports is because these markets reflect the degree of confidence there exists among domestic and foreign investors (which involves individuals as well as the big corporations) in global political and economic conditions and in the economic and fiscal fundamentals of Indonesia.
In essence, the Indonesian rupiah showed the same performance in 2024 as it did in the previous four years, namely it continued to weaken against the US dollar, albeit (the outlook for) interest cuts in the United States did cause a sharp, yet temporary, rebound in August 2024. Shortly after that rebound, the rupiah came under heavy pressures again, which continued into the last month of 2024.
There was some confusion about the government’s plan to raise the value-added tax (VAT) rate from 11 percent to 12 percent. Based on Law Number 7 of Year 2021 on Harmonization of Tax Regulations (specifically in Article 7), a one percentage point VAT hike from 10 to 11 percent materialized on 1 April 2022. That law also ordered for another one percentage point hike (to 12 percent) on 1 January 2025, the latest.
For Indonesia’s currency and stock markets, November 2024 was not a good month. We saw some rupiah depreciation reappearing (against the US dollar) and a falling benchmark stock index (Jakarta Composite Index, or IHSG). What this means is that market participants are nervous. And in times of nervousness, Indonesian assets are typically the first victim as participants seek safe haven assets.
As expected, Bank Indonesia cut the benchmark interest rate at its monetary policy meeting on 17-18 September 2024. The BI rate was cut by 25 basis points (bps) to 6.00 percent, while also lowering the deposit facility and lending facility rates by 25 bps to 5.25 percent and 6.75 percent, respectively.
When global markets became really confident that the US Federal Reserve would cut its benchmark interest rate in September 2024, there occurred a sort of relief rally that is visible in Chart A below. Amid the increase in risk appetite, Indonesian stocks and the rupiah rate strengthened. Chart A shows that this rally started in late-July or early August 2024.
Over the past month, expectations of a looming interest rate cut in the United States (US) have only grown. The US Federal Reserve is widely expected to start cutting its benchmark interest rate at its policy meeting scheduled for 17-18 September 2024. In fact, the question seems to be whether it’ll be a 0.25 or 0.50 percentage point cut.
It is very interesting to take a quick look at the conclusions drawn at the latest US Federal Reserve meeting (held on 30-31 July 2024), as these conclusions have a big impact on global financial markets, including the Indonesian rupiah rate (and even on monetary policy of Indonesia’s central bank, Bank Indonesia).
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