IHSG Strengthens Today, Boosted by BI Rate Hike and SOE Buyback Plan

The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) showed an impressive performance in trading on Wednesday (10/6/2026). After opening slightly lower by 2.59 points (0.05%) at 5,744.06, the IHSG immediately rebounded with a sharp gain of 132.84 points, or 2.31%, to 5,879.49 by 09:35 WIB. This positive momentum continues the spectacular relief rally from the previous day, when the index surged 7.57% from its annual low of 5,317 towards the 5,722 level. Head of Research at Kiwoom Sekuritas, Liza Camelia Suryanata, explained that the strengthening was triggered by a positive market response to swift action by monetary authorities and the government. Bank Indonesia (BI) surprisingly raised the BI Rate by 25 bps to 5.50% at an out-of-schedule meeting. The measure was taken after the BI Governor acknowledged pressure on the rupiah, which had weakened deeper and faster than initially forecast. In addition, the government’s plan to encourage share buyback actions by state-owned enterprises (BUMN) helped restore investor confidence. Amidst the capital market rally, President Prabowo Subianto received a routine report from the National Economic Council (DEN), chaired by Luhut Binsar Pandjaitan. Despite the stock market turning green, the real sector faced new challenges as of 10 June 2026. Following a spike in global oil prices, non-subsidised fuel prices officially underwent a significant adjustment. The government assured that prices for Pertalite and Biosolar remain stable to protect the wider public’s purchasing power amidst global energy inflation pressures. Liza Camelia cautioned that although the current rally has managed to quell panic, the market must remain alert to the risk of foreign capital outflows and an increase in the sovereign risk premium that still looms over the domestic fiscal condition.