RRI.CO.ID, Jakarta - Indonesia’s benchmark stock index (IHSG) closed higher after the President Director of the Indonesia Stock Exchange (IDX), Iman Rachman, announced his resignation during Friday morning trading, 30 January 2026. The decision was described as a gesture of responsibility following heightened volatility in the capital market over the past two sessions.

After briefly plunging to 8,167 shortly after the opening bell, the IHSG swiftly reversed course and climbed to an intraday high of 8,408. The index eventually ended the session up 1.18 percent at 8,329.606.

One positive takeaway from the development is the President’s directive to increase the allocation of institutional funds, particularly from pension and insurance managers, into equities, with a target of up to 20 percent exposure. This move reflects the government’s awareness of market risk and underscores the importance of supporting economic growth not only through the real sector, but also via a resilient capital market.

Sustained pressure in the domestic equity market could potentially trigger capital outflows, placing stress on Indonesia’s balance of payments and, in turn, the rupiah. A weakening currency would pose further risks to the real sector, amplifying economic vulnerabilities.

The multiplier effect of financial market stress could eventually spill over into employment and broader economic stability. While such impacts may not materialize immediately, prolonged pressure could accumulate and lead to more complex economic challenges over time.

On Friday, the rupiah traded weaker at around 16,780 per US dollar. Market sentiment indicates that the US dollar remains relatively strong, continuing to exert pressure on its major counterparts.

Meanwhile, global gold prices edged lower, hovering around USD 5,100 per troy ounce. Following a sharp rally in the previous session, when prices briefly surpassed the psychological level of USD 5,500, profit-taking activity was widely anticipated. Despite the correction, gold prices continue to carry upside potential.

Escalating geopolitical uncertainty remains a key catalyst supporting gold’s longer-term outlook. In addition, expectations of a potential easing in US monetary policy add to the positive sentiment, not solely driven by economic data, but also by growing political pressure from the US President on the Federal Reserve.

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