The bond market proved more resilient than the stock market amid the weakening Indonesian Rupiah against the US dollar. This is evident in the chart below (processed by Katadata), showing that the decline in the bond index was less significant than that of the stock index or the Rupiah. (Index, January 2, 2018 = 100)
Global financial market uncertainty related to the Fed's (US central bank) interest rate hikes, the trade war, and Indonesia's widening trade deficit caused the Rupiah to plummet to over Rp 15,000 per US dollar. This resulted in falling stock and bond prices, leading to significant losses for many investors this year.
The Rupiah exchange rate closed at Rp 15,183 per US dollar on Friday, October 5th, representing a 10.99% weakening from its year-start position. The Jakarta Composite Index (IHSG) has corrected by 9.58% to 5,731.94. Similarly, the Indonesian Bond Price Index (IBPA) fell by 4.39% to 232.75.
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