
The 10-year government bond yield rose to 7.7% on 28 October 2026, the highest since the pandemic, before easing to 7.64% on 29 October. Pressure followed an MSCI announcement on Indonesian stock market status, the rupiah's slide toward Rp18,100, and continued foreign outflows.
Higher sovereign yields and a weaker rupiah raise financing costs and import costs for Indonesian feed producers and livestock farmers. Investors are demanding higher risk premiums on rupiah assets, which keeps pressure on the currency.
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