IDX-Rupiah Under Heavy Pressure; Will Today Be Even More Tense?
The Indonesian financial market is expected to continue facing pressure today. The Jakarta Composite Index (IHSG) suffered a significant downturn on Wednesday (3/6/2026), recording several negative milestones during 5.5 hours of trading.
Global markets provided significant headwinds, as Wall Street closed lower on Wednesday (local time). The decline was driven by rising oil prices and US Treasury yields, amid growing concerns that the US-Iran conflict could fuel inflation. The Dow Jones Industrial Average fell by 620.72 points (1.21%) to 50,687.07, while the S&P 500 dropped 0.74% to 7,553.68, and the tech-heavy Nasdaq Composite slid 0.89% to 26,853.98.
Oil prices rose following new attacks involving the US and Iran. West Texas Intermediate (WTI) contracts climbed 2.41% to US$96.02 per barrel, while Brent strengthened 1.89% to US$97.81 per barrel. Tensions in the Middle East have escalated, with US Central Command reporting the interception of Iranian ballistic missiles and drones, alongside US-led defensive strikes in the region.
Rising oil prices have also pushed up US Treasury yields, with the 10-year yield approaching 4.5%. This surge follows robust US ADP employment data and resilient service sector activity. Economic strategists suggest the market is correcting the assumption that interest rate cuts would be easily implemented, as the US economy appears to be strengthening.
Furthermore, the decline in AI-related stocks, including Nvidia, Dell Technologies, and Microsoft, has weighed on global markets. For Indonesia, the IHSG remains under pressure from external factors such as a strengthening US Dollar and global volatility, alongside domestic concerns regarding S&P ratings and new government policies.
On the domestic front, significant attention is focused on the P2SK Law (Development and Strengthening of the Financial Sector). The revision is entering its final stage, with the DPR scheduled to pass the bill in a plenary session today. Key highlights of the revised law include the formation of a task force to combat illegal online lending and gambling, regulations regarding debt issuance by Danantara, and the establishment of the Indonesia Financial Centre in Bali as a Special Economic Zone. Additionally, the OJK (Financial Services Authority) will see expanded oversight powers, including responsibility for capital markets, carbon exchanges, and crypto assets.