IHSG Surges 0.93% Driven by Banking Sector Stocks

The Jakarta Composite Index (IHSG) opened higher on Monday, May 25, 2026, continuing a rebound after a significant downturn the previous week. The index rose 57.30 points, or 0.93%, to 6,219.35 by the end of the first session. A total of 511 stocks advanced, 204 declined, and 99 remained unchanged. Trading value reached Rp9.27 trillion with a volume of 16.99 billion shares and 1.27 million transactions. Most sectors advanced, with financial, non-primary consumer, and industrial sectors leading gains. Infrastructure, energy, and raw materials sectors declined. Three major Indonesian banks, BBRI, BBCA, and BMRI, were the primary drivers of the IHSG’s performance. The rise followed a 1.1% rebound to 6,162.04 on Friday after sustained pressure. This week’s trading session will be shortened due to the Idul Adha holiday on Wednesday and Thursday (May 27-28, 2026). Investors must closely monitor key market sentiments given the abbreviated trading week. International sentiment will focus on the Iran conflict entering its fourth month. The US and Iran have made progress in peace talks to end the war and reopen the Strait of Hormuz, but disagreements persist over Iran’s uranium stockpile and proposed vessel fees on the strategic waterway. US Secretary of State Marco Rubio noted ‘positive signs’ towards a deal but stressed the US rejects any fee system at the Strait of Hormuz. President Donald Trump reiterated the strait must remain open for international shipping. The Strait of Hormuz, through which around 20% of global oil and LNG supplies pass, has seen near-halted shipping activity since the conflict began on February 28. Negotiations are also stalled over enriched uranium. The US demands Iran surrender its uranium stockpile due to concerns it could be used for nuclear weapons, while Iran insists its nuclear program is peaceful. Trump instructed his negotiators not to rush a deal and confirmed the US blockade on Iranian ports would remain until a formal agreement is signed. He also faces criticism from Republican figures like Mike Pompeo and Ted Cruz, who argue the deal would be too favourable to Iran. Domestically, government policies and economic data will drive market sentiment. Last week, the government announced a major policy to establish a strategic commodities export body. Market participants are expected to remain focused on its implications this week, especially as many implementing regulations have yet to be released. The new policy has drawn significant market attention due to concerns over its potential impact on corporate performance. The government has decided to fully transfer Indonesia’s strategic commodities exports to the state-owned export entity PT Danantara Sumberdaya Indonesia (PT DSI) by January 1, 2027, delaying the original September 1, 2026 deadline. The government will implement the export mechanism through the special entity starting next month, with a transition period until December 31, 2026. During this time, companies can still sell directly to buyers, but all export documentation must go through the state-owned enterprise (SOE). After the transition period, the government will conduct an evaluation before fully implementing the policy from January 2027. The move aims to strengthen export oversight, curb under-invoicing, transfer pricing, and prevent foreign currency outflows. Meanwhile, FTSE Russell announced the results of its quarterly review for the June 2026 FTSE Global Equity Index Series (GEIS). Four Indonesian stocks were removed from the index without any new additions. The changes will take effect on Monday, June 22, 2026, following Friday’s market close on June 19. According to FTSE Russell’s announcement, PT Dian Swastatika Sentosa Tbk (DSSA) was removed from the Large Cap category, while no changes were made to the Mid Cap or Small Cap categories. In the Micro Cap category, FTSE removed three companies: PT Diastika Biotekindo Tbk (DAAZ), PT Hillcon Tbk (HILL), and PT Mulia Industrindo Tbk (MLIA).