IHSG Strengthens as Market Monitors Global Monetary Direction Amid Conflict

Jakarta (ANTARA) - The Composite Stock Price Index (IHSG) of the Indonesia Stock Exchange (BEI) moved higher on Wednesday morning as market participants monitored the direction of global monetary policy amid uncertainties surrounding the development of the conflict between the United States (US) and Iran.

The IHSG opened up 24.22 points or 0.34 percent to 7,096.61. Meanwhile, the LQ45 Index of 45 leading stocks rose 2.56 points or 0.38 percent to 684.88.

“Kiwoom Research estimates there is still potential for further slight consolidation to close the gap at 7,022, up to 7,000-6,917. A wait-and-see approach is more recommended while awaiting market stabilisation,” said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Wednesday.

From overseas, market participants are awaiting the results of the Federal Open Market Committee (FOMC) meeting of the Fed on 28-29 April 2026 this week, which is expected to hold its benchmark interest rate.

In addition, market participants are also awaiting the direction of monetary policy from the European Central Bank (ECB) and the Bank of England (BoE) this week. Meanwhile, the Bank of Japan (BoJ) has maintained its benchmark interest rate at 0.75 percent.

Developments in the conflict between the US and Iran, previous reports indicate that Iran has submitted a new proposal to end the two-month conflict with the US and Israel, while reopening the Strait of Hormuz, which had been considered as a de-escalation route.

However, the Wall Street Journal and Reuters revealed that US President Donald Trump and his team are sceptical, as the proposal delays discussions on the nuclear programme, which has been the core issue of the conflict from the outset.

This disappointment led to the cancellation of the US negotiator’s dispatch to Pakistan, while dampening market hopes for a quick resolution. Trump even described Iran as in a state of “collapse” and urged the opening of the Strait of Hormuz amid uncertainties within Tehran.

On the other hand, the US naval blockade is beginning to pressure Iran’s energy exports, thereby increasing the risk of production declines and domestic fuel shortages.