PALANGKA RAYA, PROKALTENG.CO – The weakening of the Indonesian Rupiah against the United States Dollar (USD), which recently touched the IDR 17,300 mark, is exerting significant downward pressure on the domestic capital market. As long as this exchange rate volatility persists, foreign capital outflows are expected to continue.
Stephanus Cahyo Adiraja, Head of the Indonesia Stock Exchange (IDX) Central Kalimantan Representative Office, explained that the current depreciation of the Rupiah is not an isolated event. Instead, it is driven by a complex interplay of global sentiment and internal domestic challenges.
“The decline in the Rupiah is not merely a result of global crises, such as the conflict involving Iran; it is also heavily influenced by domestic factors, particularly concerning fiscal conditions and governance,” Stephanus stated on Monday, April 27, 2026.
From an economic perspective, Stephanus noted that as long as global and domestic uncertainties linger, the national currency may face continued downward pressure. Technically, the Rupiah is currently trading within a range of IDR 17,140 to IDR 17,340 per USD, a threshold that serves as a critical psychological marker for its future performance.
“If the exchange rate breaches the upper limit of IDR 17,340, the depreciation could become more pronounced. Conversely, if it manages to stabilize below the IDR 17,140 level, the Rupiah has the potential to regain strength and move toward the IDR 16,900 range,” he added.
This exchange rate volatility is having a direct and measurable impact on the capital market, with foreign investors retreating from the stock market amid the ongoing pressure. Regarding the Composite Stock Price Index (IHSG), which is currently holding at 7,106.52, Stephanus outlined potential technical trajectories.
“If the IHSG breaks through the support level of 6,942, the next downward target could be 6,745. However, if the index maintains its current position, there is potential for a rebound toward 7,450, with a medium-term target set at 7,982,” he concluded. (her)
Summary
The Indonesian Rupiah has weakened to approximately 17,300 against the US Dollar, driven by a combination of global geopolitical tensions and domestic fiscal and governance challenges. This depreciation has triggered significant foreign capital outflows, placing considerable downward pressure on the Indonesian capital market.
The Composite Stock Price Index (IHSG) is currently experiencing instability, with experts monitoring critical support levels to determine future performance. While the index faces potential further declines if it breaks below 6,942, there remains a possibility for a recovery toward 7,450 if market conditions stabilize.