Rupiah Weakens Due to Geopolitical Tensions, Here Are Safe Investment Recommendations

JAKARTA, KOMPAS.com - Geopolitical tensions involving the United States (US), Israel, and Iran have entered a worrying phase for global economic stability. This conflict is sparking serious concerns regarding disruptions to energy supply chains, particularly if strategic trade routes such as the Strait of Hormuz are affected. This uncertain situation has driven fluctuations in global crude oil prices, which directly impact rising logistics costs and inflation in various countries, including Indonesia. The weakening of the rupiah exchange rate increases the government’s burden for energy subsidies and the costs of importing industrial raw materials. In this highly volatile condition, the availability of liquid emergency funds becomes crucial. Additionally, the first strategy in managing investments at present is to strictly diversify portfolios. “Spreading assets across various instruments with different risk characteristics will help minimise total losses when one market sector experiences a sharp correction,” said Danica in a written statement on Thursday (30/4/2026). Besides diversification, placing funds in safe-haven assets is a common anticipatory step. In addition to gold, strong currencies like the US dollar are often used as hedging instruments when emerging markets face capital outflows. In the stock market, focus should be shifted to defensive sectors. Defensive sectors are industries whose performance is not greatly affected by economic cycles or political turmoil, such as essential consumer goods, healthcare, and utilities.