14 Critical Developments Shaking Indonesia This Week, Causing Volatility in IDX and Rupiah
The Indonesian financial market is expected to continue facing pressure today. According to Refinitiv data, the Rupiah closed slightly stronger by 0.06% at Rp18,010/US$.
US markets experienced heavy pressure at Friday’s close, triggered by a mass sell-off in technology stocks, particularly the semiconductor sector. The Nasdaq Composite, which is heavily weighted towards tech, recorded its sharpest daily decline since the tariff volatility period of April 2025, correcting by 4.18% to 25,709.43. This weakness also dragged the S&P 500 down by 2.64% to 7,383.74, and the Dow Jones Industrial Average lost 1.35% to end at 50,866.78, despite having hit an all-time high just a day prior.
This weekend’s decline broke the market’s positive trend, with the S&P 500 recording its first negative week in ten weeks, dropping over 2%, while the Nasdaq plummeted by 4.7% over the week. The negative catalyst for the chip sector began accumulating mid-week, following Broadcom’s failure to revise up revenue projections for its AI chip business. This disappointment weighed heavily on the sector on Thursday.
Selling intensity peaked on Friday after the US Bureau of Labor Statistics released May’s non-farm payroll data, which grew far beyond expectations. New jobs surged by 172,000, surpassing economists’ predictions of 80,000. This strong employment data triggered a spike in US government bond yields, with the 10-year US Treasury yield rising above 4.5% and the 30-year yield breaching 5%. This situation revived market concerns regarding high borrowing costs for corporations financing AI infrastructure.
The macroeconomic combination proved destructive for major semiconductor stocks. The iShares Semiconductor ETF recorded its worst day since March 2020, plunging 10%. The decline was led by Marvell Technology, which fell over 16%, followed by Micron Technology, which dropped 13%. Intel Corporation and Advanced Micro Devices (AMD) both weakened by approximately 11%, while Broadcom fell by nearly 8%.
Beyond equities, indications of speculative position liquidations spread to the crypto market, where Bitcoin fell below the US$ 60,000 level for the first time since late 2024. Analysts suggest investors are taking profits to rebalance portfolios that were overweight in technology. Furthermore, the tech slump is linked to market preparations for the massive Initial Public Offering (IPO) of SpaceX, scheduled for next week, with a target valuation of US$ 1.77 trillion. Some observers believe the mass liquidation in chip stocks and Bitcoin is due to fund managers clearing portfolio space to secure liquidity for the SpaceX IPO.
As a result of the tech sector’s decline, capital flows on Wall Street shifted towards defensive sectors such as healthcare and consumer staples. This rotation boosted the performance of Colgate-Palmolive by 4%, Coca-Cola by over 3%, and Johnson & Johnson by 2%.
The Indonesian financial market continues to face dynamics ranging from warfare to investors closely monitoring domestic fiscal resilience.
Fiscal Resilience
War Re-escalates
Iran reportedly launched missiles at Israel on Sunday (7/6/2026), the first time since the ceasefire between Tehran and Washington took effect in April. The Speaker of the Iranian Parliament, Mohammed Baqer Ghalibaf, accused the US naval blockade and Israeli attacks in Lebanon of violating the agreement, stating that US bases and Israeli assets in the region are now legitimate targets.
US President Donald Trump, having received reports of the attack, stated that Iran’s actions would not assist the negotiation process. Trump is also reportedly planning to contact Israeli Prime Minister Benjamin Netanyahu to urge him not to retaliating against Iran. The Iranian Revolutionary Guard Corps (IRGC) emphasised that the ceasefire remains valid provided the conflict ceases on all fronts, including Lebanon. Iran warned of a broader response if attacks recur. These tensions threaten fragile peace efforts, as Iran demands an end to the war in Lebanon and the removal of the US blockade, while Washington demands Tehran surrender nuclear materials and halt its nuclear ambitions.