Jakarta, CNBC Indonesia- Domestic financial market movements are still strongly influenced by external sentiment. Where the hawkish policy of the US Central Bank, the weakening of the Chinese economy and the Russian-Ukrainian and Palestinian-Israeli geopolitical conflicts have pushed the Rupiah to weaken and affected the JCI rate.

President Director Samuel AM, Agus Basuki said that the escalation of the war in Palestine and the increase in US Treasury yields had put pressure on the Rupiah exchange rate, which is currently at the level of IDR 15,600 per US Dollar.

Geopolitical tensions in the Middle East have pushed up world oil prices and are feared to drive global inflation. This condition will of course again “force” central banks such as the Fed to raise interest rates, as a result capital outflows will increase and the exchange rates of emerging countries such as the Rupiah will continue to weaken.

What is the impact of global turmoil on the Rupiah? What is the effect on the attractiveness of Indonesia’s financial sector? For complete details, see Syarifah Rahma’s dialogue with the President Director of PT Samuel Aset Manajemen, Agus Basuki at Power Lunch,CNBCIndonesia (Thursday, 12/10/2023)