RRI.CO.ID, Jakarta - Indonesia’s benchmark stock index (IDX Composite) came under heavy pressure following an announcement by global index provider MSCI. Meanwhile, gold prices surged above $5,100 per ounce amid growing global uncertainty.
U.S. consumer confidence fell sharply to 84.5 in January from 94.2 previously, well below market expectations of around 90. Market participants are now turning their attention to an upcoming speech by the U.S. President, as India recently reached a trade agreement with the European Union.
In early trading, the IDX Composite slid to 8,393 after MSCI announced a temporary freeze on several index changes involving Indonesian stocks. The decision was taken amid global investor concerns over transparency in share ownership data and broader market investability issues.
Meanwhile, the Indonesian rupiah strengthened to around 16,730 per U.S. dollar, supported by a weaker U.S. Dollar Index, which fell to the 95 level. With limited positive sentiment in today’s session, the IDX Composite is expected to remain under pressure.
The rupiah is projected to trade within the range of 16,650 to 16,770 per U.S. dollar throughout the day. Gold prices continued their upward trend, trading around $5,166 per troy ounce, after briefly touching $5,185 per ounce in the U.S. market.
Domestically, gold prices are currently hovering around IDR 2.8 million per gram. The rally in gold prices has been driven by renewed U.S. tariff threats against South Korea, deteriorating global economic expectations, and escalating geopolitical tensions.
Writer: Gunawan Benjamin (Economist at the Islamic University of North Sumatra)
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