IHSG strengthens, buoyed by combination of domestic and global sentiment

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) moved higher on Thursday, buoyed by a combination of positive sentiment from both domestic and global levels. The IHSG opened 28.78 points, or 0.45 percent, higher at 6,379.92. Meanwhile, the LQ45 index of 45 leading stocks rose 2.99 points, or 0.47 percent, to 636.98. “Technically, several indicators suggest the potential for the IHSG’s strengthening to continue, testing the 6,370-6,400 level,” said Phintraco Sekuritas Head of Research Ratna Lim in her analysis in Jakarta on Thursday. Domestically, Indonesia’s economic growth was recorded at 5.29 percent year-on-year (yoy) in the second quarter of 2026, down from 5.61 percent (yoy) in the first quarter of 2026, but above market expectations of 5.1 percent (yoy). From the expenditure side, growth was driven by increased government consumption, in line with employee spending and various government programmes, as well as investment (PMTB) which recorded its highest growth in a year. Meanwhile, household consumption remained the main pillar of the economy although its growth rate slowed slightly, while export performance was held back by faster-growing imports. From the business field side, the processing industry remained the largest contributor to GDP, supported by a strengthening construction sector thanks to infrastructure and industrial estate development. Conversely, the mining sector experienced a slowdown due to production quota restrictions.