Indonesian Political, Business & Finance News

Breaking News! IHSG Opens Strong This Morning, Up 1%

| Source: CNBC Translated from Indonesian | Finance
Breaking News! IHSG Opens Strong This Morning, Up 1%
Image: CNBC

The Jakarta Composite Index (IHSG) accelerated at the opening of trading on Tuesday (18/8/2026), after the Indonesia Stock Exchange (BEI) holiday in celebration of the 81st anniversary of the Republic of Indonesia.

Based on Indonesia Stock Exchange data, the IHSG immediately strengthened by 64.69 points or 1.01% to the level of 6,466.58 at the start of trading.

The IHSG strengthening occurred after the last trading session on Friday (14/8/2026), when the index closed at 6,401.89, up 1.59%.

At the start of today’s trading, 282 stocks rose, 184 stocks fell, and 497 other stocks were stagnant. Transaction value was recorded at around Rp452 billion with trading volume reaching 844.6 million shares and a frequency of 80,330 transactions.

The Indonesian stock market reopened after the 81st Independence Day holiday with investor attention focused on a number of important economic agendas this week. Domestically, the market will observe the results of Bank Indonesia’s Board of Governors Meeting (RDG) taking place on 18-19 August 2026. BI is expected to maintain its benchmark interest rate at 5.75% after previously raising the BI Rate aggressively by 75 basis points in April-June 2026.

In addition to the interest rate decision, investors are also awaiting the release of External Debt Statistics (SULNI) for June 2026 today. In May, Indonesia’s external debt position reached US$444.40 billion, the highest level in the data series since 2007.

Other domestic sentiment comes from the 2027 State Budget Draft (RAPBN). The government is targeting state revenue of Rp3,426 trillion and state expenditure of Rp4,097.2 trillion, with the budget deficit maintained at 2.40% of GDP. Investors will observe how this fiscal posture translates into economic growth and financial market prospects.

Meanwhile, the market remains overshadowed by the impact of the NTT earthquake. As of 17 August 2026, BNPB reported the death toll had reached 68 people. The government stated that disaster management can still be carried out with domestic resources and has not yet opened the option of foreign aid.

Externally, sentiment tends to be mixed. Japan’s economy grew 0.3% quarter-on-quarter in Q2-2026, below the 0.5% expectation, while China’s industrial production in July only grew 4.5% year-on-year and retail sales grew 0.6%, both slowing from the previous month and below market expectations.

Global investors will also await the minutes of the Fed meeting or FOMC Minutes on Thursday early morning Indonesia time. The minutes are important because at the July meeting there were three FOMC members who dissented and wanted a 25 basis point rate hike, opening speculation about the direction of Fed policy in September.

In the commodity market, Iran-United States tensions also remain a risk to watch. The threat of escalation in the Strait of Hormuz could affect oil prices, exchange rates, inflation, and sentiment towards global risk assets.

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