The Indonesian Rupiah and stock prices weakened throughout September 2019 due to ongoing global uncertainty. The Rupiah depreciated by 0.02% to 14,195 per US dollar during September, compared to its position on August 31st. Similarly, the Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) fell by 2.52% to 6,169.1 points during September, compared to the closing price at the end of August.
Meanwhile, the Indonesia Composite Bond Index (ICBI) of the Indonesian Capital Market Supervisory Board (PHEI) rose by 1.05% to 266.84 during September. Some stock investors shifted their investments from the stock market to the bond market, strengthening the bond index amidst the weakening Rupiah and stock prices.
(Read Databoks: [link to article about foreign investors withdrawing Rp 1.77 trillion from the capital market])
The lack of certainty regarding the end of the US-China trade war, the surge in global oil prices, and the impeachment proceedings against President Donald Trump led domestic money market investors to adopt a wait-and-see approach, taking profits. Domestically, protests against the revision of the Criminal Code (RKUHP) weighed on stock prices and the Rupiah exchange rate.
(Read Databoks: [link to article about protests weakening the Rupiah and IHSG])