Rupiah Weakens Amidst Import Concerns; Trade Tensions Impact Global Markets

The Indonesian Rupiah has weakened against the US dollar, impacting stock market performance and listed companies. On March 5th, the Rupiah closed at Rp 16,313 per USD, a rise of 0.81% from the previous day, but had previously hit Rp 16,596, its weakest level since June 1998. This depreciation affects companies like Kalbe Farma (KLBF), which imports 60%-70% of its raw materials in USD. Astra International (ASII) is mitigating risks through hedging and business diversification. Perusahaan Gas Negara (PGAS) is closely monitoring exchange rates and employs a natural hedge strategy. Globally, trade tensions escalated as the U.S. imposed tariffs, prompting retaliatory measures from Canada and China. This has led to significant declines in stock market indices, including the Dow Jones, S&P 500, and Nasdaq. European markets also experienced downturns, with the FTSE, DAX, and CAC all falling. Concerns about inflation and potential impacts on central bank policies are contributing to investor unease.