IHSG Opens Slightly Lower as Market Awaits President's Speech

The Indonesia Stock Exchange (IDX) composite index (IHSG) opened slightly lower on Friday morning, moving sideways 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 leading 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 to 6,370 during Friday’s trading,’ said Phintraco Sekuritas Head of Research Ratna Lim in a note in Jakarta, Friday (14/8/2026). Domestically, market participants are closely watching President Prabowo Subianto’s state address at the 2026 Annual Session of the People’s Consultative Assembly (MPR) and the Joint Session of the House of Representatives (DPR) and the Regional Representatives Council (DPD), as well as the delivery of the government’s introduction and statement on the 2027 State Budget Bill (RUU APBN) and its financial note. Previously, the DPR’s Budget Committee reported that the 2027 National Priority Work Programme consists of eight clusters, including food sovereignty, energy and water self-sufficiency, education, health, downstreaming and industrialisation, infrastructure, housing and disaster resilience, a people’s economy and villages, and poverty reduction. In the 2027 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, US Consumer Price Index (CPI) data for July 2026 stood at 3.4 percent year-on-year (yoy), while core CPI fell to 2.5 percent yoy. Meanwhile, the US Producer Price Index (PPI) was stagnant in July 2026, compared to a deflation of 0.1 percent month-to-month (mtm) in June 2026 and market expectations of 0.2 percent mtm. On an annual basis, the US PPI was 4.7 percent yoy in July 2026, the lowest level since March, down from 5.5 percent yoy in June 2026. The moderate producer inflation data prompted market participants to lower expectations for a US Federal Reserve interest rate hike. Oil prices weakened by around 2 percent on Thursday (13/8), after US Energy Secretary Chris Wright stated that exports through the Strait of Hormuz were higher than expected, providing positive sentiment. European stock markets were mixed on Thursday (13/8), with the Euro Stoxx 50 rising 0.20 percent, the UK’s FTSE 100 falling 0.56 percent, Germany’s DAX weakening 0.12 percent, and France’s CAC 40 declining 0.28 percent. Meanwhile, US stock markets strengthened on Thursday (13/8), with the S&P 500 rising 0.65 percent to 7,799.19, the Nasdaq Composite gaining 1.15 percent to 30,084.50, and the Dow Jones Industrial Average edging up 0.13 percent to 53,839.99. In regional Asian markets this morning, the Nikkei index rose 0.95 percent to 68,956.00, the Shanghai index gained 0.45 percent to 3,964.4, the Kospi index surged 4.08 percent to 6,847.41, the Hang Seng index fell 0.27 percent to 25,370.81, and the Straits Times index weakened 0.55 percent to 5,689.26.