IHSG Takes a Breather, Dips 0.39% Ahead of BI Rate Decision

The Indonesian Composite Index (IHSG) halted its recent rally during the first trading session on Wednesday (22/7/2026), closing the morning down 0.39% or 24.47 points at 6,315.55. The pause follows a strong nine-day winning streak that saw the index breach the 6,300 level.

Trading data showed a transaction value of approximately Rp 11.24 trillion, with 238 stocks declining, 190 advancing, and 366 remaining unchanged. The market’s breather comes as investors shift their focus to Bank Indonesia’s (BI) Board of Governors meeting, with the latest interest rate decision due this afternoon.

The recent rally, which marked the longest consecutive gain since a similar run in July 2025, was supported by returning foreign funds. Foreign investors recorded a net buy of Rp 1.99 trillion from 16 July to 21 July, with daily transaction values consistently exceeding Rp 15 trillion in recent days.

A CNBC Indonesia poll of 14 institutions revealed that a majority of economists expect BI to raise its benchmark rate by 25 basis points to 6.00%. If implemented, this would be the fourth rate hike since May 2026, bringing the total tightening to 125 basis points, primarily aimed at stabilising the rupiah.