Rupiah steadies below 17,000 as oil shock keeps pressure on the currency
The rupiah recovered late in the session and finished back under Rp17,000 per dollar, after earlier trading briefly pushed it through that psychological level. The move came as global risk sentiment improved on hopes of Middle East de-escalation, but the currency still faces a heavier fiscal overhang after the government said it may need up to Rp100 trillion in extra energy subsidies this year. Policymakers are trying to cushion the oil shock with fuel-sale limits and other market measures, which may help near-term stability. Even so, the subsidy bill and persistent war-driven energy volatility suggest the rupiah remains highly vulnerable to any renewed rebound in crude prices.
IHSG ends sharply higher on regional relief rally
The Jakarta Composite Index jumped 1.93% to 7,184.44 at the close, extending a broad rebound in Indonesian equities. The session tracked a strong Asia-wide risk rally as investors priced in a possible easing of Middle East tensions. The advance was broad-based, with most sectors finishing in the green and the industrial group leading the move. That strength helped the index recover from the prior session’s weakness, though the market is still trading well below its January peak.
Big banks drive the rebound as financials regain some oxygen
Large-cap banks were among the key engines of the rebound, with BBRI and BBCA cited as major contributors to the index gain. Market reports also showed banking shares rising alongside the broader relief move, reinforcing how closely the sector is tied to foreign risk appetite. The sector is still rebuilding trust after months of policy and governance shocks that pressured capital flows into Indonesian assets. That means the big-bank rally may be welcome, but it also leaves financials exposed if overseas investors turn cautious again.
Government bonds firm as yields edge lower on better risk tone
Indonesian government bonds closed firmer, with yields down 1-3 basis points across the curve as investors leaned back into risk. The tone was more constructive than in late March, when bond yields had been pushed higher by the oil shock and stagflation fears. Even after the bounce, the long end remains elevated, with the 30-year yield still around 6.84% at the end of March. That leaves the market sensitive to any fresh rise in energy prices, subsidy pressure, or signs that fiscal discipline is slipping.