Iran and US Ceasefire, Purbaya: Rupiah Strengthens, IHSG Rises 3 Percent

Finance Minister Purbaya Yudhi Sadewa commented on the ceasefire between Iran and the United States that is set to last for the next two weeks. The improved situation in the Middle East has led to a strengthening of the rupiah and a 3 percent increase in the IHSG. If the negative sentiment fades, Purbaya believes Indonesia’s core economic foundations will start to become apparent. In addition to the rupiah, other countries’ currencies such as the Thai baht, Chinese yuan, Philippine peso, Japanese yen, and South Korean won have strengthened in the range of 0.78-1.59 percent. The decline in foreign exchange reserves does not necessarily indicate a negative development, as Bank Indonesia has utilised them for issuing government global bonds to intervene in the market and stabilise the rupiah exchange rate. Foreign exchange reserves as of March 2026 are equivalent to financing six months of imports and 5.8 months of imports as well as government external debt payments. This is above the international standard of three months of imports. The Iranian government has allocated two weeks for negotiations with the US side under the direct guidance of Supreme Leader Mojtaba Khamenei. “This ceasefire does not mean the end of the war, while awaiting negotiations on the details of the 10-point plan,” reported Xinhua on Wednesday (8/4/2026). Subsequently, Iran will demand one thing in the negotiations, namely that the resulting agreement be formalised in a UN Security Council Resolution as binding international law.