Composite Pressure Batters Financial Markets: Effects on Rupiah and IHSG

Jakarta, CNBC Indonesia — Indonesia’s financial markets are facing combined external and internal pressures driving rupiah depreciation, rising bond yields, and weakness in the IHSG (Indonesia Stock Exchange Index).

Domestically, the market is contending with shocks from MSCI’s suspension of Indonesia’s index rebalancing and Fitch Ratings’ downgrade of Indonesia’s debt outlook. Externally, the Iran-US conflict is driving crude oil price increases and disrupting global supply chains, intensifying threats of a global economic slowdown.

Camar Remoa, Director of PT Insight Investments Management, highlighted that financial markets are facing a combination of pressures from Moody’s and Fitch Ratings downgrading Indonesia’s debt outlook to negative, coupled with oil price surges resulting from the US-Iran conflict. This combination of sentiment is increasing pressure on fiscal policy, the rupiah, and volatility in Indonesia’s financial markets.

The analysis explores how these pressures are affecting Indonesia’s financial market and the impact of rising oil prices on the state budget (APBN). The discussion was featured in Power Lunch, CNBC Indonesia on Tuesday, 10 March 2026, with host Andi Shalini and Camar Remoa, Director of PT Insight Investments Management.