Market Update 16 Oct 2026

Market Closing - Thursday, 15 October 2026

• Jakarta Composite Index (JCI): Closed lower at 5,863, compared with the previous day's closing level of 5,943.
• Indonesian Rupiah (IDR): Closed weaker at IDR 17,925 per USD, compared with IDR 17,900 per USD at the previous close.

DOMESTIC MARKET

• Equity Market: The JCI closed lower at 5,863. Several factors contributed to the decline, including uncertainty surrounding the resolution of the Middle East conflict, which kept oil prices above USD 105 per barrel and heightened Indonesia's fiscal risks going forward. The simultaneous weakening of the JCI and depreciation of the Rupiah, alongside risk-off sentiment across Asian markets and rising Indonesian Government Bond (SBN) yields, were viewed as reflecting capital outflows toward US dollar-denominated assets perceived as safer investments.
• Rupiah Performance: Pressure on the Rupiah partly stemmed from heightened risk aversion in Asian financial markets. Domestic factors affecting investor sentiment included elevated oil prices, which placed additional pressure on the state budget and constrained the government's fiscal flexibility. In addition, Indonesia's external debt was reported to have reached a record high.
• Federal Reserve Outlook: The next Federal Open Market Committee (FOMC) meeting is scheduled for 27-28 October 2026. Market expectations regarding whether the Federal Reserve will raise or maintain its policy interest rate remain influenced by the US economic fundamentals, particularly inflation and labor market data, which showed weaker-than-expected conditions in the previous month.

GLOBAL MARKET

• European Central Bank (ECB): The ECB may need to raise interest rates again amid signs of mounting price pressures, according to Governing Council member Gediminas Šimkus. He noted that September inflation came in above expectations, energy costs exceeded forecasts, and the labor market remained relatively resilient.
• Iran's Security Situation: Iran is facing a surge in attacks by separatist militants in its southeastern region, further exacerbating the country's security challenges. The latest escalation in violence comes as the US-Israeli war against Iran approaches its ninth month, while Washington and Tehran remain deadlocked in efforts to establish control over the strategically important Strait of Hormuz.
• Saudi Arabia's Geopolitical Challenges: Houthi attacks have pushed Saudi Crown Prince Mohammed bin Salman into one of the most significant crises of his tenure. The Saudi Crown Prince is seeking allies more urgently than at any time since becoming the kingdom's de facto ruler in 2017.

RUPIAH OUTLOOK

Based on the developments outlined above, the Rupiah is expected to trade within the range of IDR 17,870-17,970 per USD today, amid ongoing developments in the global geopolitical landscape.

NDF Rate as of 08:30 WIB: 18,050-18,060

INDONESIA'S KEY ECONOMIC INDICATORS

• GDP Growth (Q2 2026): 5.29%
• BI-Rate (September 2026): 5.75%
• Inflation (September 2026, YoY): 3.28%
• Foreign Exchange Reserves (September 2026): USD 146.3 billion

Sources: CNBC Indonesia, Trading Economics, Bank Indonesia, Reuters

CLOSING EXCHANGE RATES

As of 15 October 2026:

FOREIGN CURRENCIES AVAILABLE FOR TRANSACTIONS

J Trust Bank - Bank Notes (BN) and Telegraphic Transfer (TT)

FOREIGN EXCHANGE TRANSACTION REQUIREMENTS

For foreign exchange transactions against the Rupiah, the following documentation requirements apply:

• Transactions at or below the applicable threshold: A signed declaration letter for transactions within the applicable threshold and a copy of valid identification must be submitted.
• Transactions above the applicable threshold: A signed declaration letter for transactions exceeding the applicable threshold, a copy of the underlying transaction documents, the taxpayer identification number (NPWP), and valid identification must be submitted.

CONTACT J TRUST BANK INDONESIA - TREASURY SALES

Telephone: (021) 2926-1114 (Hunting)

• Bintang: 0812 2650 949
• Naomi: 0877 0633 1585
• Hanif: 0811 8762 001
• Ade: 0821 6939 7410

Disclaimer:

Although this information has been compiled by PT Bank JTrust Indonesia Tbk (J Trust Bank) from sources considered reliable, J Trust Bank makes no representation or warranty as to its accuracy or completeness and accepts no responsibility for any errors or omissions. Accordingly, the information contained herein does not constitute a guarantee of future performance and should not be relied upon as such. All information disclosed herein is subject to change without prior notice. No part of this information may be reproduced in any form without the prior written consent of J Trust Bank.