An equity analyst from PT Indo Premier Securities (IPOT), Hari\nRachmansyah, forecasts that domestic capital market sentiment this week\nwill be influenced by fiscal dynamics and monetary policy amid rising\nglobal energy commodity prices. He stated that surging crude oil and\ncoal prices could increase pressure on government finances, thereby\nnecessitating swift measures to keep the budget deficit under\ncontrol.<\/p>\n
\u201cThe combination of fiscal dynamics and the direction of monetary\npolicy is expected to be the primary factor shaping sentiment and the\ndirection of movement in the Composite Stock Price Index in the short\nterm,\u201d Hari said in a press statement on Monday, 16 March 2026.<\/p>\n
Should the fiscal deficit continue to widen, he noted, the resulting\nrisks include increased government debt financing requirements, pressure\non government bond yields, and potential rupiah weakening due to\nheightened investor risk perception regarding fiscal stability.<\/p>\n
Additionally, Hari observed that market participants will also\nmonitor the results of Bank Indonesia\u2019s Board of Governors meeting. He\nindicated that by consensus, the central bank is expected to maintain\nits benchmark interest rate to preserve currency stability and control\ninflation amid mounting external pressures.<\/p>\n
On the external front, Hari assessed that global uncertainty stemming\nfrom geopolitical tensions between the United States and Iran will\ncontinue to weigh on markets. \u201cWhilst this conflict persists, global\nmarket volatility is expected to remain elevated as investors tend to\nadopt a risk-off stance,\u201d he said.<\/p>\n
Hari also predicted that the Composite Stock Price Index will move\nmixed with a weakening tendency. Trading this week will occur for only\ntwo business days\u201416-17 March 2026\u2014due to the extended holiday for Nyepi\nand Eid al-Fitr.<\/p>\n
In conditions of continued market uncertainty, Hari advised investors\nto be more selective in stock selection, prioritising issuers with\nstrong fundamentals, stable cash flows, and relatively defensive\nexposure to global volatility. \u201cSmart money\u2019s wait-and-see strategy,\nmaintaining higher cash positions, and gradually accumulating at support\nlevels could be a more prudent approach whilst awaiting clarity on\nglobal geopolitical developments and the direction of domestic fiscal\npolicy,\u201d he said.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/fiscal-dynamics-set-to-influence-ihsg-movement-this-week-1773644000", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }