{
    "success": true,
    "data": {
        "id": 1721449,
        "msgid": "rupiah-stability-key-to-attracting-foreign-investors-to-the-stock-market-1778190991",
        "date": "2026-05-06 15:29:28",
        "title": "Rupiah Stability Key to Attracting Foreign Investors to the Stock Market",
        "author": "Friska Yolandha",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "The stability of the rupiah exchange rate is identified as a crucial factor in rekindling foreign investor interest in Indonesia's stock market, according to experts at PT Mirae Asset Sekuritas Indonesia. Despite a recent strengthening of the Composite Stock Price Index (IHSG) aligned with global sentiments and better-than-expected first-quarter economic growth of 5.61% year-on-year, supported by government spending and household consumption during Ramadan and Eid, foreign fund outflows persist amid high currency volatility. Analysts caution that growth may normalise in subsequent quarters due to seasonal factors and external pressures like slowing exports, rising imports, and commodity price declines affecting the mining sector.",
        "content": "<p>REPUBLIKA.CO.ID, JAKARTA \u2013 Rully Arya Wisnubroto, Head of Research\nand Chief Economist at PT Mirae Asset Sekuritas Indonesia, stated that\nthe stability of the rupiah exchange rate (kurs) is a key factor in\nattracting renewed interest from foreign investors to Indonesia\u2019s stock\nmarket. Rully explained that the current strengthening of the Composite\nStock Price Index (IHSG) is still in line with global sentiments and\ndoes not yet reflect significant fundamental changes.<\/p>\n<p>\u201cAs long as rupiah volatility remains high, global investors will\ntend to remain cautious in increasing their exposure to\nrupiah-denominated assets. Exchange rate stabilisation will be an\nimportant prerequisite for seeing a more sustainable reversal in foreign\nfund flows,\u201d said Rully in an official statement in Jakarta on Wednesday\n(6\/5\/2026).<\/p>\n<p>Nevertheless, the latest macroeconomic data shows better performance\nthan expected, including Indonesia\u2019s economic growth of 5.61%\nyear-on-year (yoy) in the first quarter of 2026.<\/p>\n<p>\u201cIt is still too early to assume that this strengthening will\ncontinue, given that foreign fund flows are still recording outflows and\nthere is no sufficiently strong new catalyst to change the market\ndirection,\u201d said Rully.<\/p>\n<p>Novani Karina Saputri, Research Analyst at Mirae Asset Sekuritas\nIndonesia, explained that Indonesia\u2019s economic growth in the first\nquarter of 2026 was strongly supported by government spending and\nhousehold consumption during the Ramadan and Eid periods.<\/p>\n<p>\u201cThe 5.61% growth (yoy) was supported by an acceleration in\ngovernment spending that increased significantly to around 21.8% (yoy),\nas well as solid domestic consumption. The frontloading fiscal stimulus\nstrategy also provided a boost to economic activity at the start of the\nyear,\u201d said Novani.<\/p>\n<p>On the other hand, she continued, on a quarterly basis, the economy\nis still experiencing a contraction of around 0.8% quarter-to-quarter\n(qtq), indicating seasonal factors.<\/p>\n<p>\u201cWe see growth potentially normalising in the following quarters as\nthe effects of Ramadan and Eid subside, and the impact of fiscal\nfrontloading diminishes,\u201d said Novani.<\/p>\n<p>From abroad, she said that pressures are starting to appear through\nslowing exports and stronger import growth, as well as contraction in\nthe mining sector due to weakening global commodity prices.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/rupiah-stability-key-to-attracting-foreign-investors-to-the-stock-market-1778190991",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}