FTSE Russell Announcement and US-Iran Ceasefire Support IHSG
JAKARTA. The Composite Stock Price Index (IHSG) strengthened by 4.42% to the level of 7,279.21 on Wednesday (8 April 2026). This was partly driven by the announcement from FTSE Russell, which continues to maintain the status of Indonesia’s equity market as a Secondary Emerging Market.
In March 2026, this subsidiary of the London Stock Exchange Group announced a delay in its evaluation. This followed the decision by MSCI regarding concerns over the transparency of Indonesia’s stock market.
The global index provider stated that it is still monitoring developments in reforms to the integrity of Indonesia’s capital market. FTSE Russell has not considered placing Indonesia on the Watch List, which is typically the initial stage towards a potential market classification upgrade.
“FTSE Russell is not carrying out a downgrade, but that does not necessarily mean MSCI will follow suit. However, this could be a consideration,” explained Fath in his presentation on Wednesday (8 April 2026).
The Stockbit Research Team added that the IHSG’s rise also stems from the announcement of a ceasefire between the United States (US) and Iran for two weeks, with the Strait of Hormuz to be reopened.
“Combined with the confirmation of FTSE’s Secondary Emerging status, Indonesia’s risk premium in the eyes of foreign investors has decreased,” it stated in research released on Wednesday (8 April 2026).
The Stockbit Research Team assesses that there is potential for foreign inflows into big-cap stocks and banking shares. This includes shares of PT Bank Central Asia Tbk (BBCA), PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Mandiri Tbk (BMRI), and PT Telkom Indonesia Tbk (TLKM).
Nevertheless, the Stockbit Research Team noted several factors that need to be monitored. First, the results of negotiations in Islamabad on 10 April 2026. Second, the realisation of the reopening of the Strait of Hormuz.
Third, developments from MSCI regarding Indonesia ahead of its May 2026 review, specifically before 12 May 2026. Finally, developments from FTSE ahead of its June 2026 review or before 19 June 2026.