Rupiah and Oil Prices Pressure IHSG, Investors Eye Gold
REPUBLIKA.CO.ID, JAKARTA – The movement of the Composite Stock Price Index (IHSG) remains under pressure amid the weakening exchange rate of the rupiah and the rise in global oil prices. This situation has led some investors to start eyeing gold as a safer instrument.
In the past week, the IHSG closed at the level of 7,026, weakening by around 0.99 percent. At the same time, foreign investors recorded net selling actions reaching Rp 2.8 trillion in the regular market.
Pressure comes from a combination of global and domestic sentiments. Geopolitical tensions are driving global investors to avoid risky assets, while domestically, the weakening rupiah is amplifying economic burdens.
Analyst at PT Indo Premier Sekuritas, David Kurniawan, said this condition makes the stock market vulnerable to short-term pressure. “Risky assets like stocks in emerging markets, including the IHSG, are likely to face short-term selling actions,” he stated in a comment quoted on Tuesday (7/4/2026).
The rupiah, which briefly breached Rp 17,000 per US dollar, is increasing import costs and potentially triggering inflation. On the other hand, high global oil prices also risk burdening the government’s energy subsidies if they persist above $100 per barrel.
Amid this pressure, gold is once again being eyed as a hedging asset. The price of Antam-produced gold bullion was last seen trading around Rp 2.89 million per gram, reflecting investor interest in more stable instruments.
The rising interest in gold indicates a cautious stance among retail investors. When the stock market is volatile, some people choose to shift funds to instruments deemed safer.
Nevertheless, opportunities remain open in the stock market. Indo Premier Sekuritas recommends several stocks that are still worth monitoring, including STAA, UNVR, and JPFA, in line with potential catalysts from domestic policies and demand recovery.
In addition, index-based mutual funds in the consumer sector are also considered worth paying gradual attention to amid the still fluctuating market movements.
David reminded market players to continue monitoring the rupiah’s movements and oil prices in the near term. “Indonesia’s economy is currently facing a tough test due to the combination of surging global oil prices and a fairly drastic weakening of the rupiah exchange rate,” he said.
The IHSG is expected to remain in a limited range with a tendency to weaken. In this condition, the public is advised to be more selective in placing funds, considering risks amid market uncertainty.