Market Turmoil: IHSG Halted, Rupiah Slides, Gold Soars

RRI.CO.ID, Jakarta - Market pressure on Indonesia’s stock market intensified today as the Jakarta Composite Index (IHSG) continued its sharp decline. The index opened lower at 8,027 and, at the time of writing, had plunged by as much as 8%, triggering a temporary trading halt on the exchange.

The sell-off was largely driven by the same lingering issue: MSCI (Morgan Stanley Capital International) has postponed the rebalancing of its Indonesia equity indices. The full effect of this decision are hard to gauge, but it has clearly shaken investor confidence.

Adding to the pressure, regional stock markets across Asia also experienced broad-based declines, increasing the risk of further downside for the IHSG throughout the trading session. Meanwhile, the Indonesian rupiah weakened to around 16,795 per U.S. dollar.

The weaker rupiah is expected to further weigh on the equity market. Currency pressure intensified after the U.S. Federal Reserve decided to keep its benchmark interest rate unchanged. Following the announcement, U.S. Treasury yields moved higher, while the U.S. Dollar Index rebounded to around 96.22.

In a notable turn, global gold prices surged to approximately $5,530 per troy ounce. Gold strengthened after the Fed reaffirmed that interest rate cuts are still expected later this year. Heightened geopolitical tensions—particularly the growing risk of conflict between the United States and Iran—have further fueled demand for safe-haven assets.

In rupiah terms, gold prices are now trading at roughly Rp3 million per gram, marking a historic high.

Writer: Gunawan Benjamin (Economist at the Islamic University of North Sumatra)