IHSG Strengthens as Investors Await Fed Minutes and Domestic Forex Reserves
The Indonesian Stock Exchange (IDX) Composite Index (IHSG) closed higher on Monday, as market participants awaited the release of the US Federal Reserve’s meeting minutes and domestic foreign exchange reserve (cadev) data. The IHSG strengthened by 40.29 points, or 0.69 percent, to 5,916.07. The LQ45 index of top 45 stocks rose 2.70 points, or 0.46 percent, to 584.48.
Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, stated that both external and internal sentiments were influencing the index’s movement. Regionally, Asian bourses moved variably as investors cautiously awaited the Fed’s minutes for further clues on the interest rate outlook. The minutes are expected to provide full details of the monetary policy decision and economic projections discussed during the Federal Open Market Committee meeting.
Market caution was also driven by the latest US jobs data, which showed non-farm payrolls increased by only 57,000 in June 2026, the smallest gain in four months and well below the forecast of 110,000. This prompted markets to scale back speculation of a rate hike in September 2025. The unemployment rate fell to 4.2 percent, largely due to a decline in the labour force participation rate to its lowest level since 2021. Investors are also looking ahead to China’s Consumer Price Index (CPI) and Producer Price Index (PPI) data for June 2026 for further signs of economic recovery.
Domestically, the market was shadowed by profit-taking actions following three consecutive days of gains. Attention is focused on the scheduled release of Indonesia’s foreign exchange reserves for June 2026. Nico noted that the data is crucial as it provides a picture of the country’s resilience in maintaining rupiah exchange rate stability and its ability to finance imports and repay foreign debt. The market is concerned that reserves may have declined, following the previous release which showed a drop to 144.9 billion US dollars at the end of May 2026, down from 146.2 billion US dollars at the end of April 2026.
The IHSG opened higher and remained in positive territory throughout the first trading session, continuing to stay in the green into the second session. Based on the IDX sectoral indices, nine sectors strengthened, led by the energy sector which rose 0.94 percent, followed by the technology and non-primary consumer goods sectors, which gained 0.94 percent and 0.91 percent respectively. Two sectors declined, with the infrastructure sector falling the most by 0.18 percent, followed by the primary consumer goods sector which slipped 0.05 percent.
Total trading frequency was recorded at 1.61 million transactions, with 18.54 billion shares traded worth 9.42 trillion rupiah. A total of 403 stocks advanced, 259 declined, and 397 remained unchanged. Among regional Asian bourses, the Nikkei index weakened 0.01 percent to 69,737.69, the Shanghai index strengthened 0.06 percent to 4,041.24, the Kuala Lumpur index rose 0.27 percent to 1,683.53, and the Straits Times index gained 0.29 percent to 5,259.61.