Video: Alarming Effects of US-Iran War; Rupiah and JCI Could Fall Further

Jakarta, CNBC Indonesia — CEO of Pinnacle Investment Guntur Putra stated that the ongoing Iran versus United States conflict continues to be a sentiment driving increased uncertainty in global financial markets.

The surge in crude oil prices resulting from the conflict remains a threat to movements in the Indonesian stock index (JCI), the sovereign bond market, and the rupiah. Regarding currency value, Guntur Putra believes that the exchange rate, which has already touched its lowest level at IDR 17,000 per US dollar, stands a high chance of continuing to weaken if the conflict persists alongside soaring inflation and a state budget deficit exceeding 3%.

This situation could also trigger global rating agencies to downgrade Indonesia’s outlook to negative, potentially leading to a sovereign downgrade. As a consequence, the rupiah could weaken further and sovereign bond yields could reach 7% from their current level of 6.7%.

What are the impacts of the expanding conflict on the JCI, rupiah, and sovereign bonds? What is the direction of investment amid this geopolitical sentiment? For further details, watch the dialogue between Syarifah Rahma and CEO Pinnacle Investment Guntur Putra on Squawk Box, CNBC Indonesia (Tuesday, 10 March 2026).