Indonesian Markets Face Pressure From Global Trends

RRI.CO.ID, Jakarta - Global tensions and new economic data are putting significant pressure on Indonesian financial markets. Currently, the local stock index, the Indonesian rupiah and gold prices are all decreasing together.

Experts predict that annual inflation in the United States will rise above 3.5%. This trend suggests that the Federal Reserve may keep interest rates high to control these rising prices.

The Indonesia Composite Index dropped by 0.68% today, 12 May 2026, to close at a level of 6,858.89. This decline reflects a general downward trend felt across most major stock exchanges in Asia.

The Indonesian Rupiah hit a historic low today as it struggled against the US Dollar. It reached a weak point of 17,525 before ending the trading day at approximately 17,490 per Dollar.

This currency pressure is a major factor behind the recent sell-off in the Indonesian stock market. International observers are monitoring how these shifts impact economic stability across the Southeast Asian region.

Gold prices have also fallen to 4,700 USD per ounce due to expectations of a tighter US monetary policy. Many investors are moving away from gold as the US Dollar continues to show unexpected strength.

Ongoing conflicts in the Strait of Hormuz have caused global oil prices to spike recently. These geopolitical issues continue to create uncertainty and volatility for financial markets around the world.

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