Today’s top headlines — March 31, 2026

Top Headline

Prabowo Discusses Energy Savings: WFH and B50 Expansion

• What's happening: President Prabowo held a meeting with his cabinet to discuss strategic moves for handling global geopolitical volatility. Key proposals include implementing Work From Home (WFH), tightening state budget efficiency, and scaling up the B50 biodiesel program.
• Why it matters: This response shows the government's concern over how the Iran-US conflict could hit energy prices and national economic stability. The push for B50 is aimed at cutting Indonesia’s reliance on oil imports, especially with shipping routes through the Strait of Hormuz facing disruptions.

Parliament Implements Power-Saving Measures Amid Efficiency Concerns

• What's happening: The DPR RI complex is set to start scheduled power outages at 6:00 PM WIB as part of a national energy-saving drive. Lawmaker Nurul warned that these measures shouldn't hinder the legislative body’s performance.
• Why it matters: While this reflects the government's serious stance on the energy crisis, it also raises questions about whether these cuts will interfere with essential government functions.

Thousands Protest in Pasuruan Against Tretes Forest Development

• What's happening: Thousands of residents in Pasuruan, East Java, took to the streets on Sunday (March 29, 2026) to oppose plans to build a real estate complex in the Tretes forest. The protest kicked off at the Simpang Dung Biru intersection around 10:00 AM WIB, with locals carrying posters and banners.
• Why it matters: Residents fear the development will destroy the natural springs they rely on. This has become one of the largest environmental protests in East Java in recent months.

Danantara Urged to Return to Its Roots as a Commercial Sovereign Wealth Fund

• What's happening: An editorial in The Jakarta Post argues that as Danantara enters its second year, it needs to prove it’s a world-class sovereign wealth fund by focusing on high-value commercial investments rather than acting as a political tool.
• Why it matters: Danantara has been under international scrutiny following a negative rating from MSCI. With the Iran conflict putting pressure on Indonesian financial markets, the need for a shift in strategy is more urgent than ever.

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

• What's happening: South Korean President Lee Jae-myung held back-to-back bilateral meetings with Indonesia’s President Prabowo and French President Macron. Discussions with Indonesia centered on KF-21 fighter jet exports, energy security, AI collaboration, and Middle East strategies.
• Why it matters: The defense and tech partnership between Indonesia and Korea is deepening amid global insecurity. If Indonesia goes through with the KF-21 purchase, it would mark one of the biggest defense contracts in both nations' histories.

Southeast Asia News: ASEAN Highlights (March 30, 2026)

• What's happening: A report by BERNAMA covers the latest developments across Indonesia and neighboring countries, including progress on Vietnam’s Long Thanh airport (expected to finish Q4 2026), as well as updates from Myanmar, the Philippines, Singapore, Thailand, and Laos.
• Why it matters: Despite rising geopolitical pressure, the ASEAN region continues to push forward with infrastructure and economic growth, showing surprising resilience.

Economy & Business

IHSG Dips Over 1%, Dropping Below 7,000

At the opening of trading on Monday, March 30, 2026, the Indonesia Composite Index (IHSG) fell by more than 1%, hitting the 6,945–6,955 range at 9:11 AM WIB. This marks a break from the psychological 7,000 support level. The sell-off is largely driven by the escalation of the Iran-US conflict and a stronger US dollar index.

Rupiah Weakens, Nears Rp 17,000 per Dollar

The rupiah weakened significantly to the Rp 16,975–Rp 16,985 per dollar range on Monday, March 30, 2026—its weakest level in recent times. The "soaring" US dollar index is being fueled by Middle East tensions and fears of a global recession. Meanwhile, Indonesia’s 10-year SBN yield has risen by 87 bps year-to-date, reaching 6.93%.

Old Rupiah Denominations Discontinued: Check Your Exchange Deadline

Bank Indonesia has pulled certain rupiah denominations from circulation. The public is urged to exchange these notes before the set deadline. The announcement comes just after the Lebaran holiday period when cash circulation is typically high.

Global News

Iran-US Conflict Day 30: Iran Warns of Land Invasion; Houthi Opens New Front

The US-Israel vs. Iran conflict has hit the 30-day mark with new escalations. Iran has warned that any US land invasion will be met with full force. Meanwhile, Yemen’s Houthi rebels have launched new attacks against Israel, making de-escalation efforts even tougher. Trump claims Iran has agreed to "most" of the 15-point US demands relayed via Pakistan, but Iran remains skeptical of Washington’s position.

What this means for Indonesia: The conflict directly impacts global oil prices and Indonesia's energy security, pushing the government to prioritize the B50 program and WFH policies. The IHSG and the rupiah are also feeling the brunt of the negative market sentiment.

Satellite Imagery Shows Heavy Damage to Iran’s Missile Infrastructure

New satellite analysis shows significant damage to Iran's ballistic missile production and launch facilities following a month of airstrikes. This could permanently shift the balance of power in the Middle East.

What this means for Indonesia: Whether Iran's weakened military capacity shortens or extends the conflict, the outcome will directly influence global oil prices and the shipping lanes used by Indonesian exporters.

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

Thousands of Americans held "No Kings" rallies in cities across the US, with the war in Iran acting as a major rallying point. Senate candidates from key states have joined the movement, signaling momentum for the opposition party ahead of the midterm elections.

What this means for Indonesia: US domestic politics will dictate how long and how intensely the military operations in Iran continue, which in turn affects global commodity markets, including palm oil and coal—two of Indonesia's biggest exports.

Quick Analysis

IHSG and Rupiah: Geopolitics Weighing on RI Markets The slip in the IHSG below 7,000 and the rupiah nearing Rp 17,000 aren't just technical figures—they reflect Indonesia's structural economic vulnerabilities in a global crisis. Two months of US-Iran conflict have rattled oil markets, pressured emerging market currencies, and caused investors to flee riskier assets. In the short term, Bank Indonesia will likely dip into foreign reserves and adjust interest rates to keep the rupiah steady. In the long run, Indonesia must fast-track energy diversification—this is where the B50 program becomes a vital strategy. The immediate impact will be felt by importers, businesses with foreign debt, and consumers bracing for higher prices on imported goods.

Iran Conflict: A Prolonged Path of Uncertainty As the war enters its second month, the signals are mixed: Trump claims diplomatic progress via Pakistan, yet Iran warns of a land invasion while Houthis open new fronts. This scenario of a "prolonged conflict" is the worst case for the global economy—high oil prices and investment jitters without a clear exit. Indonesia is in a paradoxical position: domestic energy costs rise, but export revenue could potentially climb, as it is both an oil importer and an energy exporter (coal and CPO).

Keep an eye on

• Rupiah and IHSG Stability: With the rupiah nearing Rp 17,000/$ and the IHSG below 7,000, market performance in the coming days is critical. Watch for Bank Indonesia's next steps and foreign investor sentiment.

• Iran–US Negotiations via Pakistan: The status of Trump's 15-point proposal remains unclear. Diplomacy over the next week will determine whether the military escalation continues or cools down.