The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange\n(BEI) moved higher on Thursday (20\/8\/2026), following gains in Asian\nstock markets, driven by the US policy of increasing the nominal amount\nof long-term bond buybacks. The IHSG opened up 53.12 points, or 0.83\npercent, at 6,447.25. Meanwhile, the LQ45 index of 45 leading stocks\nrose 5.06 points, or 0.81 percent, to 632.53.<\/p>\n
\u201cIf the IHSG fails to break back through 6,490-6,500, the pullback\ncould continue towards 6,377-6,355, with the next support at\n6,294-6,286. As long as that area can be defended, the opportunity for\nthe IHSG to retest the 6,490-6,500 resistance remains open. Conversely,\nif the IHSG manages to break through 6,500, the strengthening could\ncontinue towards 6,723,\u201d said Head of Research at Kiwoom Sekuritas\nIndonesia Liza Camelia Suryanata in her research note in Jakarta on\nThursday (20\/8\/2026).<\/p>\n
From abroad, market sentiment improved especially after the US\nTreasury Department announced an increase in the nominal amount of\nlong-term bond buybacks to at least 4 billion US dollars per operation\nstarting 9 September 2026, from the previous 2 billion US dollars.<\/p>\n
\u201cThe policy eases pressure on the bond market and helps support\nequities,\u201d Liza said.<\/p>\n
Meanwhile, the minutes of the Fed\u2019s July 2026 meeting showed that a\nmajority of officials supported keeping interest rates at their current\nlevel. However, many participants assessed that a rate hike could be\nnecessary if inflation does not decline.<\/p>\n
Fed officials assessed that the US inflation outlook remains highly\nuncertain and risks are tilted to the upside. Three regional Fed\npresidents had previously expressed dissent against the decision to hold\nrates.<\/p>\n
On the other hand, tensions between the US and Iran continue as both\nsides have not reached an agreement regarding the Strait of Hormuz.<\/p>\n
US President Donald Trump again stated that the US has full control\nover the shipping lane, while Iran demands a halt to hostilities and the\nunfreezing of Iranian assets as part of the conditions for reopening the\nstrait.<\/p>\n
\u201cThe deadlock keeps the risk of disruption to global energy trade\nroutes high,\u201d Liza said.<\/p>\n
Domestically, the Bank Indonesia (BI) Board of Governors Meeting on\n18-19 August 2026 decided to hold the BI-Rate at 5.75 percent, in line\nwith consensus expectations.<\/p>\n
In addition, BI maintained its domestic economic growth projection in\nthe range of 4.9-5.7 percent in 2026, with current growth starting to\nmove towards the midpoint to the upper bound of the projection.\nMacroeconomic stability remains maintained, reflected in foreign\nexchange reserves of 145.3 billion US dollars.<\/p>\n
On the other hand, the government plans to cut the quota for certain\nsubsidised fuels in 2027 to 20.09 million kilolitres, a decline of 58.5\npercent, or around 28.34 million kilolitres, from 48.43 million\nkilolitres in 2026.<\/p>\n
The policy is part of efforts to control energy subsidies, including\nPertalite, assuming an Indonesian Crude Price of 75 US dollars per\nbarrel in 2027.<\/p>\n
\u201cThe quota cut could tighten public access to subsidised fuel and\nincrease the shift in consumption to non-subsidised fuel, which could\nadd to transport costs and pressure purchasing power, especially for\nlower-middle income groups,\u201d Liza said.<\/p>\n
European stock markets were mixed on Wednesday (19\/8), with the Euro\nStoxx 50 down 0.11 percent, the UK FTSE 100 up 0.14 percent, Germany\u2019s\nDAX down 0.14 percent, and France\u2019s CAC 40 down 0.1 percent.<\/p>\n
Meanwhile, Wall Street closed higher on Wednesday (19\/8), with the\nS&P 500 up 0.20 percent to 7,710.70, the Nasdaq Composite up 0.20\npercent to 26,331.09, and the Dow Jones Industrial Average up 0.20\npercent to 53,463.11.<\/p>\n
Asian regional stock markets on Thursday morning included the Nikkei\nup 0.95 percent to 65,950.00, the Shanghai index up 0.54 percent to\n3,915.4, the Kospi up 6.18 percent to 6,870.41, the Hang Seng up 0.77\npercent to 25,696.81, and the Kuala Lumpur index up 0.14 percent to\n1,733.72.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-and-rupiah-both-positive-here-are-the-triggers-1787201610", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }