Indonesian Stocks Plunge 5%, Rupiah Hits $1=Rp17,930

Indonesia's Composite Stock Price Index (IHSG) plummeted 5.01 percent to 5,885.1 during the first trading session on Wednesday, June 3, 2026. The index had opened higher that morning, reaching 6,207.1, but fell sharply.

Equity Analyst at PT Indo Premier Sekuritas, David Kurniawan, stated that future market direction hinges on exchange rate stability. "If the rupiah can show stabilization in the coming weeks, market sentiment could improve, potentially drawing foreign capital back into the domestic stock and bond markets," he said in a press release on Tuesday, June 2.

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If the rupiah can show stabilization in the coming weeks, market sentiment could improve, potentially drawing foreign capital back into the domestic stock and bond markets.

Kurniawan noted that while Bank Indonesia raised its interest rate to 5.25 percent to curb external pressures, the market is watching if this policy effectively controls rupiah volatility and reduces capital outflow. Global factors, including US monetary policy, will also be a market focus this week.

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the rupiah's decline is influenced by stalled negotiations between the US and Iran, which has driven up global crude oil prices.

Simultaneously, the rupiah weakened to Rp 17,930 against the US dollar by 11:25 AM WIB. Ibrahim Assuaibi, Director at PT Traze Andalan Futures, attributed the rupiah's decline to stalled negotiations between the US and Iran, which has driven up global crude oil prices. Internally, Assuaibi highlighted a high demand for dollars, with people shifting funds from conventional savings to foreign currency accounts.

Assuaibi advised the government to maintain economic stability and public purchasing power. He stressed the need to ensure the availability of imported goods and provide economic stimulus to the public.

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people are now continuously moving their funds from conventional savings to foreign currency accounts.