IHSG closes lower as market cautious over domestic risks
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed lower on Wednesday afternoon as investors adopted a cautious stance towards risks to domestic security stability. The IHSG closed down 95.98 points, or 1.48 percent, at 6,405.69. Meanwhile, the LQ45 index of 45 leading stocks fell 9.40 points, or 1.46 percent, to 632.55.
“Market attention is focused on national security stability as well as macroeconomic fundamental factors. Market participants hope that demonstrations proceed peacefully, so that domestic security stability is maintained,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his research note in Jakarta on Wednesday.
Domestically, market participants are focused on monitoring the planned demonstration in front of the DPR/MPR RI building on Thursday (27/8), with one of the demands being the ratification of the Asset Forfeiture Bill. On the other hand, market participants are responding to Fitch Ratings’ assessment, which stated that the economic growth assumption of 6.0 percent in 2027 in the 2027 State Budget Draft (RAPBN) is more realistic. However, Fitch noted that geopolitical uncertainty, rising oil prices, and undisciplined fiscal policies could potentially affect Indonesia’s economic growth target.
In addition, market participants are also monitoring the fit-and-proper test agenda for the Bank Indonesia (BI) Governor candidate, with Destry Damayanti being the sole candidate proposed by the government. “Market participants are awaiting the views of the new BI Governor regarding the direction of monetary policy, inflation control, rupiah exchange rate stability, and strategies for maintaining foreign capital flows,” said Nico.
From abroad, Asian regional markets strengthened amid signs of progress in Middle East talks, easing concerns over potential global energy supply shortages. Pakistan said it had made significant progress in talks with Iran aimed at ending the war. At the same time, the foreign ministers of Iran and Oman said they discussed plans for a temporary transit corridor through the Strait of Hormuz, along with a project to clear mines from the waterway. “Thus, the decline in oil prices and reduced concerns over disruptions in the Strait of Hormuz also reduce pressure on inflation,” said Nico.
On the other hand, market participants are monitoring developments from the ongoing meeting of the Standing Committee of China’s National People’s Congress, with the session on 25-28 August 2026 being closely watched for policy support following weak economic data and repeated promises from policymakers to boost growth.
Opening higher, the IHSG moved into negative territory until the close of the first trading session. In the second session, the IHSG remained in the red until the close of stock trading. Based on the IDX-IC Sectoral Index, all eleven sectors weakened, with the transportation and logistics sector falling the deepest at 4.04 percent, followed by the energy and property sectors which fell 2.40 percent and 2.35 percent respectively.
Meanwhile, the stocks that experienced the largest price increases were TMPO, NICE, SAFE, BIKE, and JAST. The stocks that experienced the largest price declines were PADA, PSKT, TAMA, FUTR, and PIA. Stock trading frequency was recorded at 2,489,000 transactions with 40.15 billion shares traded worth Rp18.06 trillion. A total of 136 stocks rose, 599 stocks fell, and 228 were unchanged.
Regional Asian stock markets this afternoon included the Nikkei index rising 0.61 percent to 66,258.00, the Shanghai index rising 0.59 percent to 3,912.52, the Hang Seng index rising 0.56 percent to 25,652.97, the Kospi index rising 0.97 percent to 6,808.21, and the Straits Times index falling 0.24 percent to 5,721.88.