Rupiah Nears 17,800, Stocks Fall

RRI.CO.ID, Jakarta - Ahead of the long Idul Adha holiday, the Indonesian stock market closed lower. The Jakarta Composite Index (IHSG) dropped 1.23% to 6,130.19 on Tuesday afternoon, 26 May 2026.

Earlier in the day, the market appeared strong and climbed to 6,286 in the first trading session. However, selling pressure later pushed the index into negative territory.

The IHSG's decline followed weakness across most Asian stock markets. Investors became more cautious as regional market sentiment turned negative.

Indonesia’s currency, the rupiah, also weakened throughout the trading session. It closed at 17,775 against the US dollar, close to the 17,800 level.

During the day, the rupiah briefly touched its weakest point at 17,790 per US dollar. Traders said the long holiday period had increased uncertainty in the market.

Investors are worried about risks that could emerge over the holiday. Market participants believe geopolitical tensions in the Middle East may trigger increase volatility.

Concerns over instability around the Strait of Hormuz also added pressure to financial markets. These conditions are unfavorable for the rupiah.

Meanwhile, gold prices fell despite rising geopolitical tensions. Gold traded around $4,508 per troy ounce, or about 2.59 million rupiah per gram.

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