Video: Rising Oil Prices Threaten State Budget Deficit, Indonesia Must Remain Vigilant

Jakarta, CNBC Indonesia — Amid sentiment surrounding the Iran versus United States and Israel conflict that is disrupting global supply chains and driving global oil prices above USD 100 per barrel, international market participants remain concerned.

From the domestic front, sentiment regarding the assessment by global rating agency MSCI concerning Indonesia’s equity weighting in global indices, alongside Fitch Ratings’ downgrade of Indonesia’s debt outlook to negative, has also fuelled market concerns about Indonesia’s capital market prospects.

This market pressure caused the Jakarta Composite Index to weaken by more than 5 per cent during Monday trading (09/03), falling to its lowest level at 7,156, with the rupiah weakening to Rp 16,990 per US dollar.