IHSG Opens Stronger Ahead of BI Interest Rate Announcement
The Composite Stock Price Index (IHSG) on Tuesday morning, 17 March 2026, moved higher as market participants adopted a wait-and-see stance regarding the direction of benchmark interest rate policy at central banks, both domestic and international.
The IHSG opened stronger by 52.32 points or 0.75 per cent to 7,074.61. Meanwhile, the group of 45 leading shares or LQ45 Index rose 6.99 points or 0.98 per cent to 720.72.
“Ahead of the long holiday, investors are expected to exercise restraint amid persistent high uncertainty. The IHSG is expected to move within the range of 6,900-7,150,” said Head of Research at Phintraco Securities Ratna Lim in her analysis in Jakarta on Tuesday.
From abroad, market participants are awaiting central bank decisions across various countries this week, including the United States Federal Reserve, scheduled for release on Wednesday, 18 March 2026.
This policy decision will be the first opportunity for central banks to react to the escalation of the conflict between the United States and Israel with Iran, which has entered its third week.
On the other hand, the movement of global crude oil prices remains a concern for market participants, as the Strait of Hormuz has been closed, hampering energy flows and threatening the global economy.
Although the United States has attempted to allay supply concerns, including through the easing of some sanctions on Russian oil, crude oil prices continue to rise.
US President Donald Trump has called on several countries to help the United States reopen the Strait of Hormuz. However, some countries have shown reluctance to provide assistance.
On the other hand, Trump stated that his planned trip to China at the end of March 2026 could be postponed, as the US seeks to pressure China to help reopen the Strait of Hormuz.
Domestically, concerns about the impact of rising oil prices on inflation, the potential widening of the state budget deficit, rupiah depreciation, and the potential slowdown in the domestic economy are negative factors affecting IHSG movement.
President Prabowo reiterated his commitment to fiscal discipline, stating that the main principle of his administration is to ensure that the Indonesian nation lives within its means.
The President emphasised that the option of loosening the state budget deficit is a last resort. The President stated that he would only consider widening the state budget deficit ceiling to a maximum of 3 per cent of GDP if Indonesia faces an extraordinary emergency situation.
On the other hand, market participants are awaiting the results of the Bank Indonesia Board of Governors (RDG) meeting scheduled for today, which is expected to maintain the BI Rate benchmark interest rate at 4.75 per cent.
Meanwhile, banking credit growth is estimated to increase 10.1 per cent (year-on-year) in February 2026, from 9.96 per cent previously in January 2026.
Asian regional stock exchanges this morning, including the Nikkei index, strengthened by 285.50 points or 0.53 per cent to 54,036.60, the Hang Seng index strengthened by 336.26 points or 1.30 per cent to 26,170.29, the Shanghai index strengthened by 11.93 points or 0.29 per cent to 4,096.72, and the Strait Times index strengthened by 56.37 points or 1.16 per cent to 4,925.06.