Gotrade News - Bank Indonesia (BI) reported a foreign capital outflow from Indonesia amounting to IDR 18.6 trillion in March 2026. This outflow was primarily driven by global financial market uncertainty due to the Middle Eastern conflict. This situation demands greater attention from investors, given its potential impact on the current Indonesian economy.
Key Takeaways:
- The Middle Eastern conflict increases global market uncertainty.
- Capital outflow from Indonesia reaches IDR 18.6 trillion.
- Bank Indonesia maintains interest rates for economic stability.
According to BI Governor Perry Warjiyo, increasing global volatility has affected investor sentiment toward assets in emerging markets, including Indonesia. The tensions between Iran and Israel since late February have exerted significant pressure, notably on the Indonesian rupiah. The rupiah weakened by 1.29% as of March 16, 2026, reflecting the conflict's impact on the currency.
Despite external pressures, Indonesia's foreign reserves remained stable, valued at USD 151.9 billion as of February 2026. This figure is sufficient to support import financing and foreign debt payments for the coming months, providing stability amid uncertainty. However, the surge in global oil prices due to the conflict poses a threat to the current account deficit.
The Middle Eastern war has also bolstered the US dollar and increased US Treasury yields. This could slow down the Federal Reserve's rate cuts, Perry added. Bank Indonesia has acted by keeping the policy rate unchanged at 4.75% to protect the rupiah's value and control inflation.
Looking ahead, BI plans to optimize policy mix responses to the protracted Middle Eastern conflict. This effort is necessary to maintain national economic growth momentum amidst unstable global conditions. Synergy is being carried out to ensure domestic economic resilience despite worsening global situations.
For investors, it's crucial to continuously monitor changes in the investment environment, particularly global economic growth and the dynamics of Indonesia's financial markets. Rising global risks require more cautious investment decisions to protect portfolios from potential market shocks.
Reference:
- Liputan6, Efek Perang Timur Tengah, BI: Arus Modal Keluar Indonesia Tembus Rp 18,6 Triliun. Accessed on March 17, 2026
- Berita Satu, BI Waspadai Perang Timur Tengah Tekan Rupiah dan Ekonomi RI. Accessed on March 17, 2026
- Bloomberg Technoz, Terdampak Perang Iran, Harga Solar AS Tembus US$5,044/Galon. Accessed on March 17, 2026
Featured Image: GPT Image 1.5
