IHSG Closes in the Red, Impact of Cabinet Reshuffle? Analyst's Take
JAKARTA, KOMPAS.com - The Composite Stock Price Index (IHSG) closed weaker during trading on Monday (27/4/2026), with increased selling pressure towards the end of the session.
Based on data from the Indonesia Stock Exchange (BEI), the index corrected by 22.969 points or 0.32 percent to the level of 7,106.520.
Throughout the session, the IHSG moved fluctuantly, recording a high of 7,230.032 and a low of 7,106.520.
So, was the IHSG’s decline caused by the reshuffle of the Merah Putih Cabinet carried out by President Prabowo Subianto on Monday?
The change in selection method, which added the high shareholding concentration (HSC) criterion, meant that several stocks with large market capitalisations had to exit the index, such as PT Barito Renewables Energy Tbk (BREN) and PT Dian Swastatika Sentosa Tbk (DSSA).
This situation triggered market volatility as institutional investors, particularly those index-based, adjusted their portfolios until the effective date of the changes.
“The dominant sentiment at present is focused on the rebalancing adjustment of IDX30, LQ45, and IDX80 with the new method that adds HSC as a criterion for entry into those three indices,” said Faris when confirmed by Kompas.com on Monday afternoon.
“This has made the market volatile until the effective day because it will eject BREN and DSSA from LQ45, given the very large market cap of both issuers,” he explained.
On the other hand, regarding the cabinet reshuffle issue, Faris assessed that the impact on the market is relatively limited.
Market reactions are generally significant if changes occur in the position of the Minister of Finance (Menkeu), which is directly related to fiscal policy and economic stability.
However, since the appointed officials have no direct connection to the financial sector, the slight weakening in the market at present is deemed more influenced by technical factors, namely the index rebalancing process, not political sentiment.
“Regarding the cabinet reshuffle, market implications would react if the reshuffle involved the Minister of Finance. However, among the appointed officials, there are none with ties to the financial sector; this slight weakening is purely due to the rebalancing period,” Faris emphasised.
The list of Ministers and Agency Heads appointed by Prabowo on Friday at 15.00 WIB includes Mohammad Jumhur Hidayat as Minister of Environment, Hanif Faisol Nurofiq as Deputy Coordinating Minister for Food, and Muhammad Qodari as Head of Bakom/Presidential Spokesperson.
Additionally, Dudung Abdurachman as Head of the Presidential Staff, Abdul Kadir Karding as Head of the Indonesian Quarantine Agency, and Hasan Nasbi as Special Presidential Advisor for Communications.
It should be noted that at the start of trading, the IHSG initially strengthened and touched the 7,200 area, but this momentum did not last long.
Entering the afternoon session until closing, selling pressure began to dominate, causing the index to move lower and close at the day’s lowest level.
From the trading activity perspective, the transaction volume reached 33.17 billion shares with a transaction value of Rp16.57 trillion and a frequency of 2.2 million times.
In terms of sectoral movements and stock performance, the number of advancing stocks still outnumbered those declining, with 408 stocks up, 264 down, and 147 stagnant. The market capitalisation was recorded at Rp12,715 trillion.