1. Rupiah Weakens Toward Rp17,000 per US Dollar Amid Rising Global Risks
The rupiah traded around Rp16,892–Rp16,893 per US dollar on 4–5 March 2026, reflecting continued depreciation pressures linked to global geopolitical tensions and risk-off sentiment.
Analysts warn the currency could approach Rp17,400 per dollar if geopolitical risks and capital outflows intensify, prompting ongoing market intervention by Bank Indonesia to stabilize the exchange rate.
2. IHSG Rebounds After Sharp Selloff Triggered by Fitch Outlook and Global Tensions
The Jakarta Composite Index (IHSG) rebounded about 1.5–1.8% on 5 March 2026 to around 7,710.54, following a steep 4.5% drop the previous day triggered by the negative outlook on Indonesia’s sovereign rating and global geopolitical concerns.
Despite the rebound, the market remains volatile as investors monitor foreign flows and macro risks, with earlier sessions showing foreign outflows and declines across all sectors during the selloff.
3. Rising Sovereign Risk Concerns Pressure Indonesian Financial Assets
Credit rating discussions and outlook revisions from agencies such as Fitch and Moody’s have raised investor scrutiny of Indonesia’s fiscal outlook, particularly regarding large social spending programs and fiscal risks.
The uncertainty has contributed to bond yield increases—such as the 10-year government bond rising to about 6.61%—and broader caution among investors toward Indonesian assets.