IHSG Strengthens Today on Domestic and Global Sentiment
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) opened higher in Tuesday morning trading (18/8/2026). The index movement was influenced by a combination of positive domestic sentiment following President Prabowo Subianto’s state address and global monetary policy dynamics.
The IHSG opened up 46.94 points, or 0.73%, at 6,448.83. In line with the benchmark index, the LQ45 index of 45 leading stocks also recorded a gain of 2.83 points, or 0.45%, to 635.11.
Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, explained that the IHSG is currently in a strengthening trend that could continue if it manages to hold certain psychological levels.
“If the IHSG can hold above 6,377, the strengthening could continue towards 6,454, then 6,500-6,600 as the next resistance,” Liza said in her research note on Tuesday (18/8).
However, she also cautioned about the risk of a correction. If the index fails to hold the 6,377 area, the IHSG could test support at 6,324, with the next support area in the 6,275-6,266 range.
Today’s IHSG strengthening is a continuation of the positive trend from Friday (14/8), when the index rose 1.59 percent. Market participants responded positively to President Prabowo Subianto’s state address at the MPR RI Annual Session regarding the 2027 State Budget Bill (RUU APBN).
Several key points that served as positive catalysts for the capital market included the government’s target to narrow the budget deficit in 2027.
Additionally, this week the market will focus on the Bank Indonesia Board of Governors Meeting (RDG) on 18-19 August 2026 to monitor the benchmark interest rate policy as well as domestic liquidity data such as money supply (M2) and the balance of payments.
From the external side, the market remains overshadowed by tensions in the Middle East, particularly the dispute between the United States and Iran regarding the opening of the Strait of Hormuz. This has triggered a rise in crude oil prices and kept the risk of energy supply disruption elevated.
On the other hand, moderate US economic data provided fresh hope. Cooling US inflation for July 2026 and weak labour data increased the probability of the Fed holding interest rates steady in September.
Currently, the probability of the Fed keeping rates unchanged stands at 67 percent. Market participants are now awaiting the minutes of the Federal Open Market Committee (FOMC) for clearer signals on the direction of global monetary policy going forward.