IHSG Opens in Red Zone, Down Slightly 0.08% to 6,296 Level
The Jakarta Composite Index (IHSG) opened weaker at the start of trading today, Friday (14/8/2026). Investors are awaiting the latest news from President Prabowo Subianto’s State Address in the Financial Note and are still observing the results of the Morgan Stanley Capital International (MSCI) August 2026 Index Review announced yesterday.
Based on Indonesia Stock Exchange data at 09.00 WIB, the IHSG fell slightly by 5.17 points or 0.08% to 6,296.59.
Transaction value this morning reached Rp 68.46 billion involving 148.65 billion shares in 20,424 transactions. The exchange’s market capitalisation reached Rp 11,065 trillion.
Today is an important day for Indonesia’s financial markets due to a crucial event, namely the State Address and the submission of the Financial Note at the MPR RI Annual Session at the DPR RI Building, which will begin at 08.30 WIB.
The Joint Session of the DPR, MPR, and DPD RI is important because President Prabowo Subianto will deliver the State Address as well as outline the government’s fiscal policy direction for the 2027 budget year.
Unlike previous years when it was held on 16 August, this year’s Joint Session was brought forward by two days because 16 August 2026 falls on a Sunday.
Prabowo is scheduled to deliver the State Address in the morning. In the afternoon, the President will deliver the Government’s Introductory Statement on the 2027 State Budget Draft Bill along with the Financial Note.
The two speeches will be important signals for the market.
Through the State Address, Prabowo will convey the achievements of 2026 and the government’s priorities going forward. The public is waiting to see which priority programmes will form the backbone of 2027.
Priority programmes such as Free Nutritious Meals are also among those eagerly awaited. This is because the programme concerns not only state spending but also public purchasing power, absorption of domestic products, and economic activity in the regions.
However, the greatest attention of market participants will be focused on the 2027 State Budget Draft.
Through the Financial Note, the government will show how much the state will spend, where revenue will be obtained, and how the government will finance its various priority programmes.
Meanwhile, MSCI officially announced the August 2026 Index Review on 12 August local time or 13 August early morning Indonesia time, to be implemented on 1 September. As a result, no Indonesian stocks were added to the MSCI Global Standard Indexes.
MSCI has determined that the increase in Foreign Inclusion Factor and Number of Shares for Indonesian stocks remains frozen. There were no additions of Indonesian stocks to the Investable Market Indexes nor any upward movement from Small Cap to Standard Index.
The August risk has been visible technically, namely GOTO being removed from the MSCI Indonesia Investable Market Index, CPIN being downgraded from Global Standard to Global Small Cap, and nine stocks being removed from the MSCI Global Small Cap Indexes. These changes take effect after the close of trading on 31 August or effective on 1 September.
The more decisive test lies in November. MSCI will assess whether ownership transparency reforms, shareholder concentration oversight, and free float improvements have been implemented consistently.
If Indonesia’s progress is deemed insufficient, MSCI may consider further steps, including opening consultations on the possibility of changing Indonesia’s status from Emerging Market to Frontier Market. However, Indonesia will not automatically be downgraded in November.
Thus, the Financial Note is an opportunity for the government to strengthen investor confidence during the three months leading up to that evaluation.