Market Update 7 Oct 2026

Tuesday, 6 October 2026 Market Close

• The Indonesia Stock Exchange Composite Index (IHSG) closed higher at 6,192, compared with the previous day's closing level of 6,118.
• The Indonesian Rupiah (IDR) closed slightly stronger at IDR 17,895/USD, compared with the previous day's closing level of IDR 17,900/USD.

Domestic

• The IHSG closed 1.21% higher at 6,192, driven by several key factors, including a correction in WTI (West Texas Intermediate) crude oil prices, which traded around US$90 per barrel. The decline was supported by improved supply conditions from the Middle East and the release of emergency oil reserves by G7 countries. These developments helped ease energy inflationary pressures and reduced demand for the US dollar as a safe-haven asset.
• Expectations of further Federal Reserve rate hikes have eased following weaker-than-expected September US labor market data, indicating a gradual slowdown in the US labor market. Market participants expect the Federal Reserve to adopt a more dovish stance, prioritizing economic growth and employment creation. As a result, market confidence in another Fed rate hike at the October 2026 FOMC meeting has weakened.
• The Rupiah closed at IDR 17,895/USD, appreciating marginally by 0.03%. The modest strengthening was supported by a decline in US Treasury yields. The outlook for the US dollar will remain highly dependent on upcoming US inflation data, the Federal Reserve's monetary policy decision this month, and geopolitical developments in the Middle East.

Global

• G7 countries and several partner nations plan to release up to 100 million barrels of oil and diesel from emergency reserves to mitigate rising fuel prices amid pressure from the Trump administration. The release will be coordinated by the International Energy Agency (IEA) and is expected to take place over the next four months. The decision follows signals from the United States that it could potentially impose a diesel export ban as a measure to pressure European countries to increase releases from their strategic reserves. Such a policy could disrupt an important source of supply for Europe, which remains heavily dependent on imports to meet its diesel demand due to limited domestic production capacity.
• Kuwait is currently producing oil at approximately 75% of its pre-Iran war output, as an increasing number of oil tankers are taking the risk of transiting the Strait of Hormuz. Kuwait's oil refineries are operating normally and remain fully functional; however, the key challenge remains the limited freedom of navigation through the Strait.
• The Bank of Japan (BOJ) has strengthened expectations that it may continue raising interest rates as Tokyo inflation accelerated further. The Consumer Price Index (CPI), excluding fresh food, rose 2.7% year-on-year in September 2026, significantly above economists' forecast of 2.3% and up from 1.8% in August 2026. This marked the highest level since January 2026.

Based on the above developments, the Indonesian Rupiah is expected to trade within the range of IDR 17,850–17,950/USD today, in line with developments in global geopolitical conditions.

NDF Rate at 08:30 WIB: 17,870–17,880

Indonesia Economic Indicators:

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

Selected Exchange Rates:

J Trust Bank – CCY BN & TT:

Currencies Available for Transaction:

Foreign Exchange Transaction Requirements Against Rupiah:

• For foreign exchange transactions against Rupiah below the applicable threshold, customers are required to provide a Statement Letter for transactions below the threshold and a copy of valid identification.
• For foreign exchange transactions against Rupiah above the applicable threshold, customers are required to provide a Statement Letter for transactions above the threshold, together with a copy of the underlying transaction documents, NPWP (Taxpayer Identification Number), and valid identification.

Disclaimer:

Although the information contained herein has been prepared by PT Bank JTrust Indonesia Tbk (J Trust Bank) based on sources believed to be reliable, J Trust Bank makes no representation or warranty as to the accuracy or completeness of such information and shall not be held responsible for any errors or omissions. Accordingly, the information provided herein does not constitute a guarantee of future performance and should not be relied upon as such. All information contained 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.