IHSG Closes Higher at 6,449 Ahead of BI-Rate Announcement

The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed higher on Tuesday afternoon (18/8), amid market expectations that Bank Indonesia (BI) will hold its benchmark interest rate (BI-Rate). The IHSG ended at 6,449.83, up 47.94 points or 0.75% from the previous close.

Phintraco Sekuritas Head of Research, Ratna Lim, explained that the index’s gain was driven by market optimism over the outcome of BI’s Board of Governors Meeting (RDG) taking place on 18-19 August 2026. BI is predicted to hold the BI-Rate at 5.75%, in line with controlled inflation and efforts to maintain Rupiah exchange rate stability.

“The IHSG’s strengthening is supported by expectations that the BI-Rate will be maintained at 5.75%, as inflation remains within BI’s target and efforts to maintain Rupiah exchange rate stability at Rp17,862 per US dollar on Tuesday afternoon,” said Ratna Lim in her research note in Jakarta.

For the record, throughout 2026, Bank Indonesia has raised the BI-Rate by a total of 100 basis points (bps). The increases occurred in May by 50 bps, and twice in June by 25 bps each. However, at the July 2026 meeting, BI decided to begin holding the interest rate at 5.75%.

From a sectoral perspective, ten sectors recorded gains, led by the energy sector with a significant increase of 2.24%. The infrastructure and transportation & logistics sectors followed with gains of 1.65% and 1.42% respectively. Conversely, the financial sector was the only one to weaken, with a correction of 0.29%.

Trading data showed transaction frequency reached 2,162,000 times with a volume of 32.07 billion shares worth Rp14.80 trillion. A total of 419 stocks were observed to have risen, 248 stocks fell, and 296 stocks were stagnant. Meanwhile, the LQ45 index actually closed slightly lower by 0.20% at 631.03.

Global market conditions remain coloured by uncertainty due to the unresolved conflict between the United States and Iran. This has raised concerns about prolonged energy supply disruptions, reflected in the varied movements of Asian regional exchanges this afternoon, where the Nikkei and Kospi indices closed in negative territory.