Breaking News! IHSG Opens Up 1% This Morning
Jakarta, CNBC Indonesia — The Composite Stock Price Index (IHSG) opened in positive territory amid investor anxiety regarding today’s MSCI index announcement, Tuesday (12/5/2026).
The IHSG opened at the level of 6,973.22, or up 1%. A total of 343 stocks rose, 127 fell, and 489 were unchanged. The transaction value reached Rp406.8 billion, involving 1.04 billion shares in 78,700 transactions.
Market capitalisation also rose to Rp12,435 trillion.
Meanwhile, the geopolitical situation remains unstable. US President Donald Trump stated that the ceasefire with Iran is now “on the brink” after Tehran rejected Washington’s proposal to end the war.
Iran demands an end to the conflict on all fronts, including in Lebanon, compensation for war damage, the lifting of the US naval blockade, guarantees of no further attacks, and the restoration of its oil exports. Tehran also reaffirmed its control over the Strait of Hormuz, a route that typically carries about 20% of the world’s oil and gas supply.
Trump described Iran’s response as “completely unacceptable” and said the ceasefire in effect since 7 April is now very fragile. Iran insists its demands are legitimate, while Parliament Speaker Mohammad Baqer Qalibaf warned that Iran’s military is ready to respond to any aggression.
This impasse has driven Brent crude oil prices up more than 3% to above US$104 per barrel. Shipping traffic through the Strait of Hormuz has shrunk dramatically, forcing producers to cut exports and straining global supply.
Domestically, market participants are preparing for the announcement of the Morgan Stanley Capital International (MSCI) index review results, amid concerns over the potential reduction in Indonesia’s weight in the global index.
MSCI will announce the results of its review of several global indices, from MSCI Global Standard Indexes, MSCI Global Small Cap, MSCI Micro Cap Indexes, to MSCI Frontier Markets Small Cap Indexes. Meanwhile, the rebalancing implementation will take effect on 29 May 2026.
OJK Commissioner Chairman Friderica Widyasari Dewi said her side is still awaiting the MSCI announcement results, while emphasising that the capital market reform steps taken by the regulator are part of efforts to strengthen market integrity.
“Even if there is a short-term adjustment, we see this as short-term pain. But Insha Allah long-term gain,” said Friderica at the Indonesia Stock Exchange (BEI) building, Monday (11/5/2026).
She acknowledged that MSCI had previously implemented a freeze, limiting the chances of new stocks entering the index, while existing stocks may face adjustments.
OJK also hopes that Indonesia will remain in the emerging market category in the next MSCI review in June 2026, amid issues of potential downgrade to frontier market status.
According to Friderica, the quality of information disclosure and the integrity of Indonesia’s capital market continue to improve and are among the best regionally.
In line with OJK, the Indonesia Stock Exchange also acknowledges the potential for a short-term reduction in Indonesia’s weight in MSCI if no new stocks enter the index.