Today’s Top Headlines — March 31, 2026

Main Headlines

Prabowo Discusses Energy Savings: WFH and B50 Strengthening

• What happened: President Prabowo held a meeting with his ministers to discuss strategic moves to face global geopolitical turmoil. Proposals included Work From Home (WFH) policies, state budget efficiency, and strengthening the B50 biodiesel program.
• Why it matters: This reflects government concerns over the impact of the Iran–US conflict on energy prices and national economic stability. Strengthening B50 aims to reduce Indonesia's reliance on oil imports amid shipping disruptions in the Strait of Hormuz.

DPR Implements Power Savings, Lawmakers Concerned Over Productivity

• What happened: The DPR RI complex will start scheduled power outages at 6:00 PM WIB as part of a national energy-saving program. Legislator Nurul warned that the policy must not interfere with legislative performance.
• Why it matters: Institutional-level austerity shows the government's seriousness in responding to the energy crisis, but raises questions about the impact on essential government functions.

Thousands Protest in Pasuruan: Opposing Tretes Forest Real Estate

• What happened: Thousands of residents in Pasuruan, East Java, took to the streets on Sunday (March 29, 2026) to reject plans for a real estate development in the Tretes forest. The protest began at Simpang Dung Biru, Tretes, around 10:00 AM WIB, with participants carrying posters and banners.
• Why it matters: Residents fear the development will destroy the water springs that the local community relies on. This is one of the largest environmental protests in East Java in recent months.

Danantara Urged to Pivot: Sovereign Wealth Fund Must Act Commercially

• What happened: A Jakarta Post editorial highlighted that Danantara, entering its second year, must prove itself as a true world-class sovereign wealth fund by actively seeking high-value commercial investments, rather than functioning as a political tool.
• Why it matters: Danantara is under international scrutiny after receiving a negative rating from MSCI. With the Iran conflict weighing on Indonesian financial markets, the pressure for Danantara to transform is becoming increasingly relevant.

Indonesia–Korea: "Diplomatic Super Week" Covers KF-21, Energy, and AI

• What happened: South Korean President Lee Jae-myung held back-to-back bilateral meetings with President Prabowo of Indonesia and President Macron of France. Topics with Indonesia included KF-21 fighter jet exports, energy security, artificial intelligence (AI) cooperation, and Middle East strategy.
• Why it matters: The Indonesia–Korea partnership in defense and technology is strengthening, especially amid global security uncertainty. The potential purchase of the KF-21 by Indonesia would be one of the largest defense contracts in both nations' histories.

Southeast Asia News March 30, 2026: ASEAN Highlights

• What happened: An ASEAN news report from BERNAMA (March 30, 2026) covered various developments in Indonesia as well as neighbors like Vietnam (Long Thanh airport targeted for Q4 2026 completion), Myanmar, the Philippines, Singapore, Thailand, and Laos.
• Why it matters: The ASEAN region continues to show infrastructure and economic progress despite rising global geopolitical pressures, suggesting the region’s resilience is relatively strong.

Economy & Business

IHSG Slides Over 1%, Dropping Below the 7,000 Level

At the opening of trade on Monday, March 30, 2026, the Composite Stock Price Index (IHSG) fell by more than 1%, touching the 6,945–6,955 level at 9:11 AM WIB. This marks the IHSG’s exit from the psychological 7,000 level it had been maintaining. Negative sentiment from the escalating Iran–US conflict and a stronger US dollar index were the primary drivers.

Rupiah Plummets Near Rp 17,000 per US Dollar

The exchange rate weakened significantly to the Rp 16,975–Rp 16,985 per US dollar range on Monday, March 30, 2026—the weakest level in recent times. The strengthening of the US dollar index ("soaring") was triggered by geopolitical uncertainty from the Middle East conflict and market fears regarding a global recession. Previously, the 10-year Indonesian Government Bond (SBN) yield rose 87 bps year-to-date to 6.93%.

Certain Rupiah Denominations No Longer Valid: Check Exchange Deadlines

Bank Indonesia has withdrawn several rupiah denominations from circulation. The public is urged to exchange these withdrawn notes before the specified deadline. This policy coincides with the post-Eid period when cash circulation is typically high.

Global News

Iran–US Conflict Day 30: Iran Warns of Land Invasion, Houthis Open New Front

The armed conflict between the US-Israel and Iran has entered its 30th day with new escalations. High-ranking Iranian officials warned that a US land invasion would be met with full force. Meanwhile, Yemen's Houthi group has opened a new front against Israel, complicating de-escalation efforts. Trump claims Iran has agreed to "most" of the 15 US demands delivered via Pakistan—however, Iran remains skeptical of Washington's position.

Relevance to Indonesia: This conflict directly affects global oil prices and Indonesia's energy security, prompting the government to discuss B50 strengthening and WFH policies. The IHSG and the rupiah are also feeling the negative sentiment from the region.

Iranian Missile Infrastructure Severely Threatened: Satellite Imagery Analysis

Recent satellite imagery analysis shows significant damage to Iran's ballistic missile production and launch facilities following a series of airstrikes over the past month. This condition has the potential to permanently alter the power balance in the Middle East.

Relevance to Indonesia: The weakening of Iran's military capacity could either shorten or prolong the conflict—both scenarios have different implications for oil prices and shipping lanes used by Indonesian export vessels.

"No Kings" Rallies in the US: Iran War Galvanizes Opposition Ahead of Midterms

Thousands of US protesters held "No Kings" rallies in various cities, with the war in Iran serving as the primary unifying factor. Senate candidates from key states joined the crowds, marking momentum for the opposition party ahead of the midterm elections.

Relevance to Indonesia: US domestic political dynamics will determine the continuation and intensity of military operations in Iran, which in turn affects global commodity markets including palm oil and coal—Indonesia’s two main export commodities.

Brief Analysis

IHSG and Rupiah: When Geopolitics Pressures Indonesia’s Financial Markets The IHSG falling below 7,000 and the rupiah nearing Rp 17,000 per dollar aren't just technical figures—they reflect the structural vulnerability of Indonesia’s economy amid a global crisis. The Iran–US conflict, now in its second month, has shaken world oil markets, pressured emerging market currencies, and pushed foreign investors to pull funds from risky assets. In the short term, Bank Indonesia is expected to use foreign exchange reserves and interest rate instruments to stabilize the rupiah. In the long term, however, Indonesia needs to accelerate energy diversification—which is where the B50 program discussed by Prabowo becomes strategically relevant. The most affected in the short term are importers needing dollars, businesses with foreign currency debt, and consumers who will feel the price hikes on imported goods.

Iran Conflict: From "30 Days" Toward Longer Uncertainty The Iran–US war has entered its second month with conflicting signals: Trump claims diplomatic progress via Pakistan, while Iran warns of a land invasion and Yemen’s Houthis open a new front. This creates a "protracted conflict" scenario that is most damaging to the global economy—oil prices remain high and investment uncertainty persists, without a clear resolution. Indonesia, as both an oil importer and an exporter of energy commodities (coal, CPO), finds itself in a paradoxical position: domestic energy costs rise, yet export revenues could potentially increase.

Keep Monitoring

• Rupiah and IHSG Stability: With the rupiah nearing Rp 17,000 per dollar and the IHSG below 7,000, movements in Indonesia’s financial markets in the coming days will be crucial. Monitor Bank Indonesia’s response and foreign investor sentiment.

• Fate of Iran–US Negotiations via Pakistan: Trump’s 15-point offer, which Iran allegedly accepted in "large part," remains vague. Diplomacy in the coming week will determine whether military escalation continues or if there is a strategic pause.

• Government WFH and B50 Policies: Following President Prabowo’s meeting with ministers, keep an eye on upcoming implementation details.