The World is Anxious Today: Will the Government Make an Important Announcement?

Indonesia’s financial markets are expected to rebound today. For more details on today’s market projections, see page 3 of this article.

Turning to the foreign exchange market, the rupiah exchange rate weakened again against the US dollar in Tuesday’s trading (7 April 2026).

From the opening of trading, pressure on the rupiah was already evident. The rupiah opened slightly weaker by 0.06% at Rp17,040/US, thencontinuedunderpressure, brieflytouchingRp17, 105/US before slightly improving at the close.

Meanwhile, the US dollar index (DXY) at 3:00 PM WIB was observed strengthening by 0.06% to 100.039.

The rupiah’s movement throughout the trading session was influenced by external and domestic sentiments. Externally, the US dollar remained stable amid cautious market players continuing to monitor the escalation of the Iran conflict.

Domestically, sentiment stemmed from fiscal developments after the government revealed plans to raise this year’s state budget deficit target.

Finance Minister Purbaya Yudhi Sadewa stated that the state revenue and expenditure budget (APBN) deficit target would be increased from the original 2.68% to 2.9%.

In the bond market, yields on government securities (SBN) remained stagnant at 6.62%. This level has held for three days.

From the US stock exchange, Wall Street mostly strengthened in Tuesday’s trading, or early Wednesday morning Indonesian time.

The indices rose amid a weakening US dollar and government bonds, as well as investors preparing for the impasse between the US and Iran.

The S&P index rose 0.08% and closed at 6,616.85, while the Nasdaq Composite strengthened 0.10% to 22,017.85. On the other hand, the Dow Jones Industrial Average fell 85.42 points or 0.18% to 46,584.46.

The major indices recovered from session lows in the last hour of trading after Pakistan’s Prime Minister Shehbaz Sharif asked Donald Trump to postpone the deadline for attacks on power plants and bridges in Iran by two weeks.

Pakistan also asked Iran to open the Strait of Hormuz for two weeks as a “sign of good faith.”

White House spokesperson Karoline Leavitt said that Trump was already aware of the proposal, and a response would be given soon.

Traders had previously been monitoring the 8:00 PM ET deadline, or 7:00 AM WIB, set by Trump for Tehran to reach an agreement to reopen the sea route, or face attacks on their infrastructure.

On Tuesday morning, Trump even posted on Truth Social: “One entire civilization will die tonight, and will never come back. I don’t want that to happen, but it’s very likely to happen.”

Nevertheless, the president still left open the possibility that the US would not attack the Middle Eastern country after the deadline.

He added that now that we have a total and comprehensive regime change, where smarter and less radical thinking dominates, perhaps something extraordinary could happen revolutionarily, WHO KNOWS?

Trump’s statement kept investors on alert throughout the trading session, which initially pressured stocks and drove up oil prices. However, oil prices ultimately closed relatively stable. West Texas Intermediate crude futures rose 54 cents to US$112.95 per barrel, while international Brent crude futures fell 15 cents to US$109.62 per barrel.

Meanwhile, Tom Graff from Facet assessed that investors should assume oil prices will remain significantly higher than before the war.

However, he viewed Iran’s closure of the Strait of Hormuz as a negotiation tactic.

Although Iran might want to reopen it on its own terms, no party, including Iran, benefits from a permanent closure of the route.

“I don’t see conditions where the Strait remains closed for months,” said the chief investment officer to CNBC.

Financial market players today will face a number of sentiments, from domestic to international. Developments in the war, especially Trump’s deadline to Iran, will be one of the main focuses of the market today.

From domestically, a government working meeting is scheduled for today, which could drive the market.

Government Working Meeting

President Prabowo Subianto is scheduled to hold a Government Working Meeting at the Central Garden of the Presidential Palace. In addition to the president, there will be presentations from several ministers.

Among them are the Minister of Agriculture, Coordinating Minister for the Economy, Minister of Finance, Minister of Energy and Mineral Resources, up to the Minister of Investment and Downstreaming.

It will be interesting to see what new policies Prabowo will convey, especially regarding mitigation of the Iran war impacts.

Trump’s Deadline to Iran Draws Nearer

US forces launched airstrikes on several military targets on Kharg Island, Iran, on Tuesday (7 April 2026). This attack was carried out after US President Donald Trump announced a very tight deadline for Tehran to reopen the Strait of Hormuz.

Citing a Reuters report, additional strikes on these military targets were claimed not to impact Iran’s oil infrastructure. This was stated by a US official speaking on condition of anonymity.

“At least some attacks targeted sites that had previously been attacked. The attacks occurred early Tuesday,” he said.

Trump’s leadership feels confident in getting a response from Iran before 8:00 PM local time or around 7:00 AM WIB on Wednesday. Currently, negotiations to end the conflict are still being pursued by the White House side.

The tone of direct conflict surged after Donald Trump issued a harsh warning regarding the situation with Iran.

In his statement, he wrote, “A whole civilization will die tonight, never to be brought back again.” He described tonight as a defining moment in global history, while pressuring Teh