{
    "success": true,
    "data": {
        "id": 1746297,
        "msgid": "jci-drops-to-6-628-as-us-iran-conflict-and-high-interest-rates-drive-weakness-1780912330",
        "date": "2026-05-18 14:57:00",
        "title": "JCI Drops to 6,628 as US-Iran Conflict and High Interest Rates Drive Weakness",
        "author": "Putri Rosmalia",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Finance",
        "summary": "The Indonesia Composite Index (IHSG) experienced a significant decline, dropping to the 6,628 level due to geopolitical tensions between the US and Iran and fears of prolonged high interest rates. Market participants are also closely monitoring the Bank Indonesia Governor's Meeting and the impact of US Treasury yields on global sentiment.",
        "content": "<p>The Indonesia Composite Index (IHSG) on the Indonesia Stock Exchange\n(BEI) opened significantly weaker in trading on Monday (18\/05\/2026).\nThis decline was triggered by market participants\u2019 concerns regarding a\npotential era of prolonged high interest rates resulting from the\nescalating conflict between the United States and Iran.<\/p>\n<p>The IHSG corrected by 94.34 points, or 1.40 per cent, to the 6,628.98\nposition at the market opening. In line with the main index, the LQ45\nblue-chip index also fell by 9.37 points (1.42 per cent) to the 648.51\nlevel.<\/p>\n<p>Ratna Lim, Head of Research at Phintraco Sekuritas, explained that\nthe index\u2019s movement this week will depend heavily on the 6,700\npsychological level. \u201cIt is estimated that if the IHSG breaks below the\n6,700 level, it could potentially test the 6,500-6,550 level this week,\u201d\nshe stated in an official study in Jakarta.<\/p>\n<p>The primary negative sentiment stems from geopolitical uncertainty in\nthe Middle East. The US-Iran conflict has driven up global crude oil\nprices, which in turn has triggered fears of global inflation. This\ncondition is reflected in the surge of 30-year US Treasury yields, which\nreached 5.1 per cent.<\/p>\n<p>Investors are now awaiting the release of the FOMC Minutes from the\nUS central bank, the Fed, to seek clues regarding the next direction of\nmonetary policy, following US inflation data that exceeded market\nexpectations. Additionally, the failure of the meeting between US\nPresident Donald Trump and Chinese President Xi Jinping to reach a major\nagreement has added further pressure to global markets.<\/p>\n<p>Domestically, market attention is focused on the Bank Indonesia (BI)\nBoard of Governors Meeting scheduled for Wednesday (20\/05). The central\nbank is predicted to maintain the BI Rate at 4.75 per cent. Market\nparticipants will also closely monitor credit growth data, first-quarter\n2026 current account transactions, and the M2 Money Supply.<\/p>\n<p>Meanwhile, FTSE Russell has decided to postpone the reweighting of\nthe Indonesian capital market index, including free float adjustments\nand the addition of new shares (IPOs), until the next review in\nSeptember 2026.<\/p>\n<p>The morning weakness of the IHSG is consistent with trends in other\nAsian markets. The Shanghai Index recorded a decline of 0.21 per cent,\nwhile the Singapore Straits Times weakened by 0.33 per cent. Economic\nuncertainty in China is also a focal point, where the People\u2019s Bank of\nChina (PBoC) is expected to maintain its one-year prime lending rate at\n3 per cent.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/jci-drops-to-6-628-as-us-iran-conflict-and-high-interest-rates-drive-weakness-1780912330",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}