IHSG closes higher at 6,449 on expectations BI-Rate will be held
The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed higher on Tuesday afternoon, as market participants predicted that Bank Indonesia (BI) would hold its benchmark interest rate (BI-Rate) in its announcement on Wednesday (19/8). The IHSG closed up 47.94 points, or 0.75 percent, at 6,449.83. Meanwhile, the LQ45 index of 45 leading stocks fell 1.25 points, or 0.20 percent, to 631.03.
“The strengthening of the IHSG was supported by expectations that the BI-Rate will be maintained at 5.75 percent, amid inflation that remains within BI’s target and efforts to maintain rupiah exchange rate stability at Rp17,862 per US dollar on Tuesday (18/8) afternoon,” said Phintraco Sekuritas Head of Research Ratna Lim in her research note in Jakarta on Tuesday.
Domestically, BI is holding its Board of Governors Meeting on 18 and 19 August 2026, and will announce its benchmark interest rate policy on Wednesday (19/8). Throughout 2026, BI has raised the BI-Rate by 100 basis points (bps), namely once in May 2026 by 50 bps and twice in June 2026 with increases of 25 bps each. At its last meeting in July 2026, BI decided to maintain its benchmark interest rate at 5.75 percent.
From abroad, market participants remained burdened after fading hopes for a near-term resolution of the conflict between the United States and Iran, raising expectations of prolonged supply disruptions from the region.
Opening higher, the IHSG remained in positive territory until the close of the first trading session. In the second session, the IHSG stayed in the green zone until the close of stock trading.
Based on the IDX-IC Sectoral Indices, ten sectors strengthened, led by the energy sector which rose 2.24 percent, followed by the infrastructure sector and the transportation & logistics sector which rose 1.65 percent and 1.42 percent respectively. Meanwhile, one sector weakened, namely the financial sector which fell 0.29 percent.
The stocks that experienced the largest price increases were KIJA, PADA, JARR, INET, and ASLI. Meanwhile, the stocks that experienced the largest price declines were TCPI, BAIK, STAR, GRPM and FUTR.
Share trading frequency was recorded at 2,162,000 transactions with 32.07 billion shares traded worth Rp14.80 trillion. A total of 419 shares rose, 248 fell and 296 were unchanged.
Regional Asian stock markets on Tuesday afternoon included the Nikkei index which weakened 2.45 percent to 67,521.00, the Shanghai index which strengthened 0.19 percent to 3,990.18, the Hang Seng index which strengthened 0.07 percent to 25,471.85, the Kospi index which weakened 1.55 percent to 6,869.97, and the Straits Times index which weakened 1.16 percent to 5,701.79.