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Tuesday, October 20, 2026English edition
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The Geopolitician

Country risk, from the local press

Indonesia · Country watch

IHSG Surges, Market Reforms, Rupiah Weakens

Indonesia's stock index rebounds, market reforms continue, and the rupiah weakens amid global pressures.

· · 4 sources

The picture Mixed

Indonesia's business conditions are mixed today. The IHSG's rebound and support for market reforms improve sentiment, but the rupiah's weakness poses challenges.

Flare-up watch: Calm — Indonesia country watch →

In this briefing Indonesia Stock Exchange · Rupiah · Bank Indonesia · Prabowo Subianto · Dewan Ekonomi Nasional

Regulation

Nothing significant reported today.

Disruption

Nothing significant reported today.

Internal tension

Nothing significant reported today.

Safety & health

Nothing significant reported today.

Companies

Nothing significant reported today.

Markets

  • Finance

IHSG surges 5.65% driven by bargain hunting

stock market candlestick chart on dark screen
Maxim Hopman / Unsplash

Indonesia's stock index, the IHSG, closed up 5.65% at 5,278 points on Tuesday, driven by bargain hunting following recent market corrections, according to ANTARA News. The trading value reached Rp26.4 trillion. This rebound comes after a period of significant declines, offering a positive signal to investors. The market's recovery is attributed to investors seeking undervalued stocks, boosting confidence in the short term.

Impact Investors in Indonesian equities see a recovery in stock values, improving market sentiment.

Sources: ANTARA News ↗, okezone.com ↗

  • Finance

Rupiah weakens amid oil price and MSCI concerns

The rupiah is expected to weaken against the US dollar, fluctuating between Rp18,040 and Rp18,090, according to okezone.com. The currency faces pressure from rising global oil prices and concerns related to MSCI's market classifications. The weakening trend continues despite recent interventions by Bank Indonesia, reflecting ongoing challenges in the currency market.

Impact Importers and companies with USD-denominated debts face higher costs as the rupiah weakens.

Sources: okezone.com ↗

Trade

Nothing significant reported today.

Politics

  • Finance

Prabowo backs DEN's market reform suggestions

President Prabowo Subianto has endorsed the recommendations from the Dewan Ekonomi Nasional (DEN) concerning the latest MSCI announcements and ongoing capital market reforms, ANTARA News reports. The recommendations aim to enhance market stability and investor confidence. Prabowo's support for these reforms underscores the government's commitment to strengthening Indonesia's financial markets amid global economic challenges.

Impact Financial market participants anticipate regulatory changes aimed at enhancing market stability and investor confidence.

Sources: ANTARA News ↗

Also today in Indonesia

Sources in this briefing

Sources: each headline links to the original article on the publisher's site.

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