Big Four Banks Slide as Rupiah Hits Record Low
Jakarta. Shares of Indonesia’s four largest banks fell sharply in Monday’s morning trade as the rupiah weakened beyond Rp 17,600 per US dollar and global market sentiment deteriorated amid rising US bond yields and surging oil prices.
Shares of Bank Rakyat Indonesia (BBRI) fell 3.21%, while Bank Central Asia (BBCA) dropped 3.28%. Bank Mandiri (BMRI) declined 2.14%, and Bank Negara Indonesia (BBNI) lost 3.10%.
The broader Jakarta Composite Index plunged 4.72% to 6,410 as of 11:09 a.m. Jakarta time.
The selloff came as the rupiah tumbled in the spot market on Monday morning, pressured by global risk aversion, rising crude oil prices, and higher US Treasury yields.
Bloomberg data showed the rupiah weakened by 51 points, or 0.29%, to a new low of Rp 17,648 per US dollar at 9:02 a.m. Jakarta time. Meanwhile, the US Dollar Index edged up 0.06% to 99.34.
The rupiah had previously closed stronger at Rp 17,475 per dollar on Wednesday.
According to brokerage firm Phintraco Sekuritas, global sentiment remained the market’s primary drag after Wall Street indexes ended lower on Friday, weighed down by profit-taking in technology stocks and rising US government bond yields.
“The market was also disappointed after the meeting between US President Donald Trump and Chinese President Xi Jinping concluded without any major agreement,” Phintraco Sekuritas said.
“At the same time, yields on 30-year US Treasury bonds surged to 5.1% amid inflation concerns and the potential for further interest rate hikes triggered by rising crude oil prices,” the brokerage added.
Phintraco Sekuritas adedd that oil prices jumped more than 3% after the United States and Iran failed to reach an agreement on geopolitical and global energy issues.
The brokerage said tensions between the US and Iran are expected to continue influencing global markets this week as geopolitical risks fluctuate.
Market participants are also awaiting the release of the Federal Open Market Committee (FOMC) minutes and earnings results from NVIDIA for clues on the Federal Reserve’s policy direction after US inflation data came in above expectations.
From China, investors are monitoring upcoming industrial production and retail sales data. China’s central bank is also expected to maintain its one-year and five-year loan prime rates at 3% and 3.5%, respectively.
Domestically, market attention is focused on the outcome of Bank Indonesia’s policy meeting on May 20, where the central bank is widely expected to keep its benchmark BI Rate unchanged at 4.75%.
“Investors are also awaiting credit growth data, first-quarter 2026 current account figures, and M2 money supply data,” Phintraco Sekuritas said.
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