IHSG Strengthens as S&P Maintains Stable Outlook for Indonesia's Debt
The Indonesia Stock Exchange (IDX) Composite index (IHSG) opened stronger on Tuesday morning, 14 July 2026, rising 0.33 percent to 6,057.76 and remaining at the 6,074 level by midday. The IHSG managed to stay above the 6,000 level after international rating agency S&P Global Ratings released its latest assessment of Indonesia’s sovereign credit rating on 13 July 2026.
S&P maintained Indonesia’s debt rating at investment grade (BBB) with a stable outlook. Deputy for Coordination of State-Owned Enterprise Management and Development at the Coordinating Ministry for Economic Affairs, Ferry Irawan, stated that the assessment is a positive momentum for the economy that needs to be continuously encouraged. The stock index had started to recover to the 6,000 level at Monday’s close after previously dipping into the 5,000 range.
Capital market analyst and founder of Republik Investor, Hendra Wardana, stated that the positive news from S&P Global Ratings was the main catalyst driving the IHSG’s strengthening back through the psychological level of 6,000. The decision signals that international rating agencies still view Indonesia’s economic fundamentals as sufficiently strong, ranging from the ability to maintain fiscal stability and financial sector resilience to medium-term economic growth prospects.
“For market participants, the certainty that there is no rating downgrade or outlook change is reassuring news, as there were previously concerns about a negative revision amid rising global uncertainty,” Hendra said in an official statement.
However, he noted that the IHSG’s strengthening does not yet fully reflect aggressive foreign capital inflows. Foreign investors recorded a net sell of approximately Rp 412 billion, indicating that some global investors remain cautious. Hendra explained that the selling pressure occurred because external sentiment is still overshadowed by escalating geopolitical conflict between the United States and Iran, a situation that has triggered a spike in global oil prices following issues regarding the closure of the Strait of Hormuz.
Additionally, the depreciation of the rupiah to around Rp 18,100 per US dollar is a factor preventing foreign investors from fully increasing their exposure to domestic assets. “In other words, positive domestic sentiment still has to contend with unabated global pressures,” he said.