IHSG Rebounds as President Prabowo's Speech Draws Market Attention

Indonesia’s stock index, the IHSG, on Wednesday morning turned higher as market participants watched President Prabowo Subianto deliver his speech at the DPR RI plenary session. The IHSG at 09:45 Western Indonesian Time (WIB) advanced 54.58 points or 0.86% to 6,425.26. Meanwhile, the LQ45, comprising 45 leading stocks, rose 9.07 points or 1.43% to 643.89, after opening weaker. ‘Technically, the 6,300 level is an important psychological support for the IHSG. If this level can be maintained, the rebound toward the 6,500-6,535 area remains open. However, if this support is breached, the downside risk could rise as the market would enter a short-term confidence crisis,’ said Hendra Wardana, a market analyst and founder of Republik Investor, when contacted by ANTARA in Jakarta on Wednesday. Domestically, Hendra explained that in the short term market participants’ focus is on President Prabowo’s speech in the DPR plenary session. Investors will look to the direction of fiscal policy, strategies to maintain economic stability, measures to strengthen the rupiah, and how the government responds to growing pressures on financial markets. Hendra noted that if the speech provides clear policy direction, fiscal discipline, and signals of support for market stability and the business environment, sentiment could improve and the IHSG could see a technical rebound. ‘However, if traders judge that there are no concrete steps to restore investor confidence, domestic market pressure could persist,’ he said. Hendra added that market players currently need more than positive sentiment; they require trust. When global dynamics ease but the IHSG continues to slide, it implies investors are awaiting clear indications of Indonesia’s economic direction ahead. ‘The president’s speech could be a key moment in determining whether the market finds a stabilization point or loses its direction again,’ he said. Another closely watched factor is the movement of the rupiah. A weaker rupiah not only raises import inflation pressures but also heightens concerns about corporate external debt and the government’s fiscal risk. ‘When the rupiah keeps weakening alongside foreign outflows from the stock market, the IHSG pressure typically increases. Therefore, rupiah stability in the coming days will be a key determinant of whether the market can rebound or resumes panic selling,’ Wardana said. Traders are also watching the outcomes of the Bank Indonesia (BI) Board of Governors meeting, which is expected to hold the BI Rate at 5.00% this afternoon. On the external front, Wardana noted that sentiment began to improve after US President Donald Trump delayed plans to attack Iran to open space for peace talks, easing concerns about global oil supply disruptions and a spike in crude prices. On Tuesday (19 May 2026) European shares moved mixed, with Euro Stoxx 50 up 0.07%, the FTSE 100 up 0.07%, the DAX up 0.38%, and the CAC 40 down 0.07%. In the US, Wall Street fell as well, with the Dow Jones down 0.65%, the S&P 500 down 0.67%, and the Nasdaq Composite down 0.61%. In Asia-Pacific early trading today, the Nikkei fell 845.59 points (1.39%) to 59,710.00, the Shanghai Composite declined 18.22 points (0.44%) to 4,151.32, the Hang Seng dropped 213.85 points (0.83%) to 25,548.50, and the Straits Times fell 39.01 points (0.77%) to 5,033.52.