IHSG moves sideways as market awaits President Prabowo's state address

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) moved sideways on Friday morning as market participants awaited President Prabowo Subianto’s state address.

The IHSG opened down 5.18 points, or 0.08 percent, at 6,296.59. Meanwhile, the LQ45 index of 45 blue-chip stocks fell 0.54 points, or 0.09 percent, to 626.62.

“The IHSG is expected to move sideways in the range of 6,230-6,370 in Friday’s trading,” said Phintraco Sekuritas Head of Research Ratna Lim in her analysis in Jakarta on Friday.

Domestically, market participants are closely watching President Prabowo Subianto’s state address at the 2026 Annual Session of the People’s Consultative Assembly (MPR RI) and the Joint Session of the House of Representatives and the Regional Representatives Council (DPR-DPD RI), as well as the government’s introductory statement on the Draft Law on the 2027 State Budget (APBN) and its Financial Note.

In the 2027 Draft State Budget Financial Note speech, market participants will scrutinise growth targets, the deficit, rupiah exchange rate assumptions, financing strategies, and government programmes that could boost consumption and investment.

From abroad, the United States Consumer Price Index (CPI) for July 2026 stood at 3.4 percent year-on-year (yoy), while core CPI declined to 2.5 percent (yoy).

Meanwhile, the US Producer Price Index (PPI) stagnated in July 2026, following deflation of 0.1 percent month-to-month (mtm) in June 2026, compared with market expectations of 0.2 percent (mtm).