IHSG Faces Volatility Amid MSCI Index Rebalancing

The IHSG is forecast to be volatile today, 29 May 2026, on the Indonesia Stock Exchange (BEI), driven by portfolio adjustments by fund managers following the MSCI index rebalancing effective after today’s market close. Morning trading data shows the IHSG opened 17.42 points or 0.28% lower at 6,112.77, while the LQ45 blue-chip index fell 10.51 points or 1.69% to 609.89. Amid market pressure, positive sentiment stems from government plans for a Value Added Tax (VAT) incentive scheme for nickel-based battery electric vehicles, with potential government-subsidised VAT (DTP) of between 40% and 100%. Although implementation is reportedly delayed by a month pending final approval, the policy is seen as a long-term positive catalyst for nickel-based battery production companies. Geopolitical tensions in the Middle East have eased slightly following reports of a potential 60-day ceasefire extension between the US and Iran, providing relief to global markets, though final approval from US President Donald Trump is still awaited. The performance of global and regional stock indices suggests investors should remain cautious of sharp price swings ahead of the afternoon trading close as MSCI portfolio weight adjustments are finalised.