Video: IHSG and Rupiah Face Significant Pressure Amid Dual Challenges

Jakarta, CNBC Indonesia – Indonesia’s financial markets remain highly volatile, according to Andri Yauhari Njauw, Managing Director and Chief Investment Officer of Pinnacle Investment, with the IHSG continuing to face downward pressure at a low of 5,900 and the Rupiah weakening to Rp 17,800 per US dollar.

The pressure on the IHSG stems from external sentiments related to the Middle East conflict driving up oil prices and causing Rupiah depreciation. Domestically, government fiscal policy concerns, including the threat of a budget deficit exceeding 3%, are adding to the strain.

This dual pressure from internal and external factors has made the Indonesian market highly volatile. What is the direction of the Fed’s policy towards the Indonesian market? Where will foreign capital flows head in emerging markets? And how will major fund managers adjust their investment strategies?