The Indonesian stock market has plummeted to its lowest level in five years, while the rupiah has set a new record low, highlighting investor concerns that persistently high oil prices are straining the nation's finances.

The benchmark Jakarta Composite Index fell as much as 5.2%, reaching its lowest point since May 2021. The materials sector led the decline, with its sub-index plunging over 10%. The Indonesian rupiah depreciated approximately 0.5% against the US dollar, leading losses among Asian currencies, as Brent crude oil extended its gains for a third consecutive day.

Data released on Tuesday showed Indonesia's trade surplus for April nearly vanished, as the impact of surging prices for imported oil and gas outweighed export growth. The May consumer price index rose 3.08% year-on-year, exceeding the median forecast from a survey of economists and moving further above the midpoint of the central bank's 1.5% to 3.5% target range.

Investor confidence in local Indonesian assets continues to wane due to fears that high oil prices will worsen fiscal conditions, the potential for an MSCI market reclassification review this month, and the risk of a credit rating downgrade. The Jakarta Composite Index has fallen roughly 32% since 2026, ranking as the worst performer among over 90 global equity indices tracked.