Rupiah Weakens, IHSG Rises as Investors Hunt Cheap Stocks

REPUBLIKA.CO.ID, JAKARTA — The rupiah exchange rate at the close of trading in Jakarta on Thursday (5 March 2026) weakened by 13 points or 0.08 percent to Rp16,905 per US dollar from the previous close of Rp16,892 per US dollar. Woori Saudara Bank analyst Rully Nova said the rupiah’s weakness was influenced by the risk of an open war between the US–Israel and Iran. ‘The rupiah’s weakness today was influenced by the continued rise in the dollar index, which is approaching 100. This condition is also influenced by the risk of an open war between the US–Israel and Iran,’ he said in Jakarta on Thursday. According to Sputnik, Iran said it did not intend to negotiate with the US and would continue hostilities between the two countries. Mohammad Mokhber, aide to the late Iranian Supreme Leader Ayatollah Ali Khamenei, on Wednesday (4 March 2026) stressed that Iran does not trust the US. According to Mokhber, Iran is capable of continuing the war because it has eight years of experience, referring to the Iran–Iraq War (1980–1988). Earlier, the Islamic Revolutionary Guard Corps (IRGC) vowed not to let the attack launched by the US and Israel on Saturday go unchallenged. The attack targeted several sites in Iran, including Tehran, with reports of damage and civilian casualties. State television confirmed that Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in the attack. Iran then launched a retaliatory missile strike at Israeli territory and US military facilities in the Middle East. The IRGC stated that the US–Israel targeted schools, hospitals, stadiums, restaurants, and wedding halls to sow public panic in Iran. They said civilian casualties had surpassed 700. Domestically, Fitch’s downgrade of its outlook added to market participants’ concerns. However, demand for government bonds rose, particularly for short to medium tenors, helping to limit the rupiah’s weakness. ‘The biggest gains were in the 7-year tenor, with yields down 4.4 basis points, then the 8-year down 4.1 bps, 9-year down 3.1 bps, and 10-year down 2.1 bps,’ said Rully. ‘Government bonds still offer fairly attractive yields and liquidity remains high,’ he added. Jakarta Interbank Spot Dollar Rate (JISDOR) Bank Indonesia also firmed today to Rp16,886 per US dollar from Rp16,911 per US dollar previously.