Market Closing - Friday, 16 October 2026
- The Jakarta Composite Index (JCI) closed down 11.57% at 5,185.10.
- The Indonesian rupiah weakened 0.45% to IDR 18,000 per USD.
On Friday, both the JCI and the rupiah closed lower against the US dollar. The rupiah's depreciation was driven by a Morgan Stanley Capital International (MSCI) circular recommending that the Indonesian equity market be reclassified as a stand-alone market. This triggered market concerns and selling pressure, leading to increased capital outflows, particularly from Indonesia's equity market.
This week, market participants will focus on key domestic developments, particularly Bank Indonesia's monetary policy decisions, including its benchmark interest rate and related policy measures. Bank Indonesia's Board of Governors Meeting (RDG) is scheduled for October 20-21, with the policy decision to be announced on October 21, 2026.
At present, there is a possibility that Bank Indonesia will raise its benchmark interest rate by 25 basis points (bps) at the meeting. In addition to domestic monetary policy, the rupiah's direction is likely to be influenced by global market sentiment, including developments in Middle East tensions, movements in oil prices, and monetary policy decisions by the US Federal Reserve.
GLOBAL
United States
US equity markets closed lower on Friday. The Dow Jones Industrial Average declined by 0.34%, the S&P 500 fell by 1.09%, and the Nasdaq Composite dropped by 2.14%.
The decline in US equities appeared to be driven by selling pressure in the technology sector, amid market concerns over competition with China in the semiconductor industry. Persistent inflationary pressures in the United States have also raised concerns that the Federal Reserve may maintain its restrictive monetary policy and keep interest rates elevated.
Oil prices were also reported to have surged again. West Texas Intermediate (WTI) crude rose by 3.43% to USD 100.94 per barrel, while Brent crude gained 2.91% to USD 108.62 per barrel. The increase was driven by heightened risks of supply disruptions amid escalating conflicts in the Middle East and Eastern Europe.
China
China's third-quarter 2026 (Q3 2026) GDP growth data is scheduled for release this morning, with market projections indicating an acceleration in economic growth to 4.4%, up from 4.3% in Q2 2026.
The People's Bank of China (PBoC) is also expected to keep its Loan Prime Rate (LPR) unchanged on Tuesday, with the one-year LPR at 3.00% and the five-year LPR at 3.50%, amid an uneven economic recovery.
An improvement in China's economic performance, supported by stronger growth and stable interest rates, would provide a more positive outlook for the Chinese economy. This could also serve as a supportive external sentiment factor for Indonesia, given China's significant role as one of Indonesia's major trading partners.
Sources: CNBC Indonesia, Refinitiv, Trading Economics, and Bank Indonesia's official website.
FOREIGN EXCHANGE MARKET INDICATORS
- Morning NDF (09:01 WIB): IDR 18,064-18,073 per USD
- USD/IDR Forecast for Today: IDR 18,000-18,100 per USD
Bank Indonesia Monetary Indicators
| Indicator | Latest Data |
| BI-Rate | 5.75% (September 23, 2026) |
| CPI Inflation (YoY) | 3.19% (August 31, 2026) |
| Foreign Exchange Reserves | USD 146.320 billion (September 30, 2026) |
| Exchange Rate | Closing Rate | Date |
| USD/IDR | 18,000 | October 16, 2026 |
| JPY/IDR | 113.92 | October 16, 2026 |
| SGD/IDR | 14,064 | October 16, 2026 |
J TRUST BANK - FOREIGN EXCHANGE SERVICES
Currencies Available for Transactions
- US Dollar (USD)
- Singapore Dollar (SGD)
- Japanese Yen (JPY)
- Euro (EUR)
- Australian Dollar (AUD)
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Requirements for Foreign Exchange Transactions Against the Indonesian Rupiah
- Transactions at or below the applicable threshold (≤ threshold): Customers are required to submit a declaration letter confirming that the transaction is below the threshold, along with a copy of their identification document.
- Transactions exceeding the applicable threshold (> threshold): Customers must submit a declaration letter confirming that the transaction exceeds the threshold, together with supporting underlying transaction documents, a Taxpayer Identification Number (NPWP), and a copy of their identification document.
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