{
    "success": true,
    "data": {
        "id": 1721397,
        "msgid": "economists-say-rupiah-is-key-to-foreign-fund-flows-into-stock-market-1778190982",
        "date": "2026-05-06 15:03:36",
        "title": "Economists say Rupiah is key to foreign fund flows into stock market",
        "author": "",
        "source": "ANTARA_ID",
        "tags": "",
        "topic": "Finance",
        "summary": "Economists from Mirae Asset Sekuritas Indonesia highlight that stabilising the Rupiah's exchange rate is crucial for attracting sustainable foreign investment back into the Indonesian stock market, amid ongoing volatility deterring global investors. Indonesia's economy grew by 5.61% year-on-year in the first quarter of 2026, supported by government spending and household consumption during Ramadan and Eid, though quarterly contraction and external pressures like slowing exports persist. Bank Indonesia is expected to maintain its benchmark interest rate at 4.75% throughout 2026, with markets watching key catalysts such as the MSCI review and exchange rate stabilisation policies.",
        "content": "<p>Head of Research and Chief Economist at PT Mirae Asset Sekuritas\nIndonesia, Rully Arya Wisnubroto, stated that the stability of the\nRupiah exchange rate is a key factor in rekindling foreign investors\u2019\ninterest in the Indonesian stock market. \u201cAs long as Rupiah volatility\nremains high, global investors will tend to remain cautious in\nincreasing their exposure to Rupiah-denominated assets. Exchange rate\nstabilisation will be an important prerequisite for seeing a more\nsustainable reversal of foreign fund flows,\u201d Rully said in an official\nstatement in Jakarta on Wednesday. Rully explained that the current\nstrengthening of the Composite Stock Price Index (IHSG) is still aligned\nwith global sentiment and does not yet reflect significant fundamental\nchanges. Although the latest macroeconomic data shows better performance\nthan expected, including Indonesia\u2019s economic growth of 5.61%\nyear-on-year in the first quarter of 2026. \u201cIt is still too early to\nassume that this strengthening will continue, given that foreign fund\nflows are still recording outflows and there is no sufficiently strong\nnew catalyst to change the market direction,\u201d Rully said. Research\nAnalyst at Mirae Asset Sekuritas Indonesia, Novani Karina Saputri,\nexplained that Indonesia\u2019s economic growth in the first quarter of 2026\nwas strongly supported by government spending and household consumption\nduring the Ramadan and Eid period. \u201cThe 5.61% growth (year-on-year) was\nsupported by an acceleration in government spending that increased\nsignificantly to around 21.8% (year-on-year), as well as solid domestic\nconsumption. The frontloading fiscal stimulus strategy also provided a\nboost to economic activity at the start of the year,\u201d Novani said. On\nthe other hand, she continued, on a quarterly basis, the economy is\nstill experiencing a contraction of around 0.8% quarter-on-quarter,\nindicating seasonal factors. \u201cWe see growth potentially normalising in\nsubsequent quarters as the Ramadan and Eid effects subside, and the\nimpact of fiscal frontloading diminishes,\u201d Novani said. From abroad, she\nsaid that pressure is starting to appear through slowing exports and\nstronger import growth, as well as contraction in the mining sector due\nto weakening global commodity prices. Looking ahead, she predicts that\nBank Indonesia (BI) will continue to maintain the benchmark interest\nrate at 4.75% throughout 2026, in line with relatively controlled\ninflation and still solid growth. However, she cautioned that risks\nremain, particularly if pressure on the Rupiah continues and oil prices\nremain high, which could push for tighter monetary policy. \u201cThe market\nwill monitor several key catalysts ahead, including the results of the\nMSCI Market Accessibility Review in June 2026 and the consistency of\nRupiah exchange rate stabilisation policies,\u201d Novani said. Trading data\non Wednesday (06\/05) at 14:35 WIB showed the IHSG strengthening by 30.45\npoints or 0.43% to 7,087.55. Meanwhile, at the same time, the Rupiah\nexchange rate was at 17,415 per US dollar. Meanwhile, foreign investors\nstill recorded a net sell of Rp518.39 billion across the market on\nTuesday\u2019s trading (05\/05).<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/economists-say-rupiah-is-key-to-foreign-fund-flows-into-stock-market-1778190982",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}