IHSG Closes Weaker as Market Awaits Definitive BI Governor

The Indonesia Stock Exchange (IDX) Composite index (IHSG) closed weaker on Monday afternoon, falling 10.65 points or 0.17 percent to 6,185.78. The LQ45 index of top 45 stocks also declined by 2.23 points or 0.36 percent to 612.56.

Opening lower, the IHSG remained in negative territory throughout the first trading session and continued to linger in the red zone until the close of the stock trading session.

Domestically, market participants tended to adopt a wait-and-see approach as they awaited the definitive Governor of Bank Indonesia (BI) following the resignation of Perry Warjiyo. Deputy Governor Destry Damayanti has been appointed as the acting Governor. While the transition aims to maintain market confidence in the continuity of BI’s role in dampening domestic financial market volatility, analysts noted that market players are concerned this could lead to uncertainty regarding monetary policy direction, BI’s independence, and rupiah stability.

Based on the IDX-IC sectoral indices, two sectors strengthened, led by the industrial sector which rose 0.72 percent, followed by the technology sector which gained 0.33 percent. Meanwhile, eight sectors weakened, with the infrastructure sector falling the deepest at 1.29 percent, followed by the property and energy sectors which declined by 0.75 percent and 0.66 percent respectively.

Stocks experiencing the largest price gains included DMMX, BAJA, ZONE, TAMA, and MCAS. Conversely, stocks recording the largest price declines were KDTN, ARKO, MLPT, OMRE, and OILS.

Trading frequency was recorded at 1,790,000 transactions, with a total of 26 billion shares traded, valued at Rp 12.12 trillion. A total of 318 stocks rose, 360 stocks fell, and 287 remained unchanged.

Externally, market participants are also in a wait-and-see mode regarding the interest rate policy direction of the US central bank, The Fed. Sentiment was lifted by easing geopolitical tensions after the United States halted attacks on Iran over the weekend, and Iran stated it had stopped retaliatory strikes against US allies in the region, according to Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus.

Nico added that the de-escalation of the US-Iran conflict caused a decline in global crude oil prices, easing concerns over energy supply and inflation. This week, market participants will scrutinise the outcome of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting on 28-29 July 2026, which will determine the direction of its benchmark interest rate. Additionally, markets will observe policy directions from the Bank of Japan (BoJ) and the Bank of England (BoE), US PCE inflation data, US second-quarter 2026 economic growth data, US durable goods orders, China’s Politburo meeting, and China’s manufacturing PMI.

Meanwhile, China’s National Bureau of Statistics (NBS) released data showing that industrial profits still recorded growth of 18.7 percent, although this represented a slight slowdown compared to the previous month’s 18.8 percent. Market participants are also paying attention to the upcoming Politburo meeting at the end of the week, where President Xi Jinping and other key policymakers are expected to outline priorities for the second half of the year.

Regional Asian stock markets closed higher on Monday afternoon, with the Nikkei index strengthening 0.66 percent to 65,038.00, the Shanghai index gaining 1.15 percent to 3,858.25, the Hang Seng index rising 0.98 percent to 25,207.18, the Kospi index increasing 0.97 percent to 6,755.75, and the Strait Times index climbing 0.55 percent to 5,619.20.