August 7, 2026 | 06:08 pm
TEMPO.CO, Jakarta - News of Perry Warjiyo's resignation as Bank Indonesia (BI) Governor on Monday morning, July 27, 2026, prompted Ahmad Pratomo to immediately check his investment app on his mobile phone. The private-sector employee and stock investor from Central Jakarta worried that Perry's departure would put further pressure on the Indonesia Stock Exchange's Jakarta Composite Index (IHSG). "My investments aren't large, but if the market drops again, it's still unsettling," the 32-year-old said on Tuesday, July 28, 2026.
Ahmad's anxiety stemmed from the fact that most of his investment portfolio consisted of financial and banking stocks. His concerns proved justified. By the close of trading that Monday, the IHSG had fallen 10.65 points, or 0.17 percent, to 6,185.78. The LQ45 Index, which tracks the country's 45 blue-chip stocks, also slipped 2.23 points, or 0.36 percent, to 612.56. Fortunately, the decline at the start of the week was nowhere near as severe as the sell-off in January 2026, when MSCI announced the temporary suspension and rebalancing of its Indonesia stock indexes.
The rupiah also came under pressure. By the close of trading on Monday, the currency had weakened by 46 points, or 0.26 percent, to 18,009 against the United States dollar, down from 17,963 at the end of the previous week. According to Bank Indonesia's Jakarta Interbank Spot Dollar Rate, the rupiah remained above the 18,000-per-dollar threshold through at least July 31.
Despite the decline, Teuku Muhammad Riefky Hasan, a macroeconomic and financial markets researcher at the Institute for Economic and Social Research of the Faculty of Economics and Business at the University of Indonesia, said the weakness in the stock market and the rupiah was relatively limited. In his view, the muted reaction suggested that investors were less concerned about the change in BI's leadership than many had feared. "Market participants understand that BI has gone all out in safeguarding foreign exchange reserves, interest rates, and the rupiah's exchange rate," he said.
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