IHSG Weakens Today as Investors Adopt Wait-and-See Stance
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) moved lower in Tuesday morning trade, declining as market participants adopted a wait-and-see stance towards various global and domestic sentiments. The IHSG opened down 19.34 points, or 0.33 percent, at 5,801.45. In line with the main index, the LQ45 index of 45 leading stocks also recorded a decline of 4.02 points, or 0.70 percent, to 568.99.
Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, explained that the IHSG is currently in a crucial phase. “If a rebound occurs, the IHSG has the potential to test resistance at 5,996–6,013. If it manages to break through that area, the strengthening could continue towards 6,097 to 6,221–6,287,” she stated in a research note in Jakarta on Tuesday. However, Liza warned of risks if the support level of 5,722 fails to hold. According to her, the risk of a deeper correction towards 5,677 to 5,594 remains wide open for the domestic index.
Internationally, investor focus has returned to the technology sector after it experienced a sharp correction the previous week. Nevertheless, caution remains high ahead of the release of United States employment data on Thursday, which will serve as an indicator for the direction of the Federal Reserve’s interest rate policy. Deutsche Bank data showed an outflow of 9.3 billion US dollars from technology-based ETFs and mutual funds last week, signalling investor diversification into other sectors. Additionally, the market is monitoring geopolitical tensions between the US and Iran in the Strait of Hormuz, although concerns have eased slightly following signals of a diplomatic meeting in Doha, Qatar.
Domestically, the government and Bank Indonesia continue to strengthen economic fundamentals. The Ministry of Finance has decided to return excess budget balance funds of Rp110 trillion to the banking sector, bringing total government fund placements to Rp281 trillion by the end of 2026. This move is supported by the provision of a standby facility of Rp100 trillion to maintain banking liquidity amid credit growth reaching 11.5 percent year-on-year as of May 2026. On the monetary side, the 100 basis point increase in the BI Rate throughout 2026 has begun to bear fruit, with foreign capital inflows of 9 billion US dollars into government securities and Bank Indonesia Rupiah Securities instruments as of 26 June 2026. Market participants are now awaiting the release of Indonesia’s Manufacturing PMI data, June inflation figures, and the trade balance as indicators of the strength of future national economic activity.