IHSG Closes Up 0.97% to 6,294, Early August Optimism Strengthens

The Indonesia Stock Exchange (IDX) Composite index (IHSG) closed higher on Tuesday, 4 August 2026, gaining 0.97 percent or approximately 60 points to reach 6,294.75, continuing its positive trend since the start of August trading. Throughout the session, the IHSG moved steadily in positive territory, touching an intraday high of 6,299.35 and a low of 6,238.40. This strengthening pushed the index further away from its previous closing position of 6,234.50. The positive performance reinforces market participants’ optimism regarding the prospects for the Indonesian capital market in early August.

The IHSG’s strengthening on the first trading day of August aligns with historical patterns observed over the past five years, where the index has recorded an average increase of more than 3 percent during the month. This seasonal pattern is one factor bolstering investor confidence entering this month’s trading. Beyond seasonal support, the market is also closely monitoring several domestic economic data releases deemed to provide positive sentiment for the Indonesian stock market.

Entering August 2026, the market has received several positive domestic catalysts. One of these is Indonesia’s inflation data for July 2026, which showed a slowdown to 2.88 percent year-on-year (yoy). This follows a period in August 2024 when the Indonesian capital market experienced a strong rally after US Federal Reserve Governor Jerome Powell signalled the start of monetary policy easing during his speech at Jackson Hole, stating that ‘the time has come’ to begin rate cuts. That statement triggered euphoria in global financial markets, including Indonesia, propelling the IHSG to a record all-time high (ATH).