RRI.CO.ID, Jakarta - The Indonesian stock market ended the week with a sharp decline, even though most Asian markets closed higher. The Jakarta Composite Index (IHSG) fell 1.72% to 5,896.134, with the intraday low of 5,830 during the trading session.

Several major companies recorded declines, including Telkom Indonesia (TLKM), Bumi Resources (BUMI), Aneka Tambang (ANTM), Bank Mandiri (BMRI), Astra International (ASII), and Bank Negara Indonesia (BBNI).

Meanwhile, the Indonesian Rupiah advanced in the opposite direction. After briefly nearing 18,000 per US dollar in the morning session, the Rupiah strengthened and closed at 17,905 per US dollar.

The Rupiah’s gain was supported by expectations of the government’s fiscal management. Investors welcomed reports that the government may reasses the budget allocation for the Free Nutritious Meal (MBG) program.

Although the results of the evaluation are still uncertain, the market sees this as a move to improve budget efficiency. In addition, reports of Bank Indonesia intervention also supported the Rupiah’s strengthening.

Separately, gold prices continued to rise, hovered around $4,050 per troy ounce or approximately 2.34 million rupiah per gram. The latest US inflation data reduced market concerns about future inflation trends.

However, investors remain cautious as there is still a possibility that the Federal Reserve may maintain a more hawkish monetary policy stance. This could influence global market movements in the future.

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