IHSG Closes Higher Amid 'Wait and See' Stance on BI Interest Rate Policy

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed higher on Monday afternoon, amid market participants’ wait-and-see approach towards the direction of Bank Indonesia’s (BI) benchmark interest rate policy. The IHSG closed up 56.25 points, or 0.91 percent, at 6,231.78. Meanwhile, the LQ45 index of 45 leading stocks rose 5.84 points, or 0.94 percent, to 627.75. “Considering domestic and global sentiment, the IHSG is expected to move within a range of 6,000-6,300 throughout the week of the BI Board of Governors Meeting (RDG), with the 6,500 level serving as an important support area,” said capital market observer and Founder of Republik Investor, Hendra Wardana, in Jakarta on Monday. This week, the BI RDG meeting is scheduled for 21-22 July 2026, where one of the key items will be determining the direction of the BI-Rate policy, which currently stands at 5.75 percent, having been raised three times by a total of 100 basis points (bps) throughout 2026. “Under these conditions, the market is generally more sensitive to the signals or forward guidance conveyed by BI rather than the magnitude of the interest rate itself,” Hendra stated. As long as BI continues to prioritise a balance between maintaining Rupiah stability and supporting economic growth, he expects the market reaction to be positive, as most expectations have already been priced in by investors. However, he noted that if a more aggressive monetary tightening signal emerges, short-term pressure on the IHSG could still occur, particularly in interest-rate-sensitive sectors.