Global Escalation Pressures Weigh on the Rupiah

The rupiah is expected to remain under internal and external pressure, following its depreciation against the US dollar at the opening of trading on Monday (19 October 2026). Doo Financial analyst Lukman Leong made the assessment amid current financial-market developments.

The rupiah weakened by eight points, or 0.04 per cent, to Rp18,035 per US dollar, compared with the previous close of Rp18,027. The movement reflects the high volatility weighing on the domestic currency.

“The rupiah is expected to remain under internal and external pressure, although sanctions by the Financial Services Authority (OJK) and a hearing by the Indonesia Stock Exchange may help restore market confidence,” he told Antara in Jakarta on Monday (19 October 2026).

Morgan Stanley Capital International (MSCI) has issued a consultation report on the potential reclassification of Indonesia’s equity market. The global index provider has opened a discussion period for market participants.

MSCI has proposed changing Indonesia’s status from an Emerging Market to a Standalone Market. Feedback from market participants will be accepted until 30 April 2027, with a final decision expected before 30 June 2027.

MSCI said market participants had reported that, to date, there had not been sufficiently consistent progress across Indonesia’s equity market. It is continuing an in-depth assessment of governance at domestic exchanges.

MSCI also said significant concerns remained about market dysfunction, including alleged coordinated trading behaviour and a lack of evidence of meaningful enforcement of rules.

In response, OJK imposed sanctions and administrative fines totalling Rp2.1 trillion on three listed companies: PT Dian Swastatika Sentosa Tbk, PT Barito Renewables Energy Tbk and PT Petrindo Jaya Kreasi Tbk. The sanctions followed an investigation into alleged violations in Indonesia’s capital market.