Indonesia's Economy Grows 5.6%, IHSG Surges 1%

Jakarta, CNBC Indonesia — The Composite Stock Price Index (IHSG) soared 1.25% as of 11:09 WIB today, Tuesday (5 May 2026). The index reached 7,058.81, up 86.86 points. A total of 378 stocks rose, 292 fell, and 289 remained unchanged. Trading value hit Rp7.42 trillion, involving 20.17 billion shares in 1.21 million transactions. Market capitalisation rose to Rp12,594 trillion. The midday IHSG performance contrasted sharply with the market opening. The IHSG dipped slightly by 3.38 points or 0.05% to 6,968.56 at the open. At that point, 209 stocks were in the green, 88 down, and 318 unchanged. Just minutes after the market opened, the IHSG fell deeper to 0.71%. The most actively traded stocks included BBCA, BRPT, and BBRI. Indonesia’s financial markets were expected to face significant pressure today. The renewed escalation of war and rising oil prices could weigh on the IHSG and the rupiah. The rupiah exchange rate came under further pressure against the US dollar in Tuesday’s trading (5 May 2026). Pressure on the Garuda currency intensified after it opened weaker in early trading. Citing Refinitiv data, as of 09:07 WIB, the rupiah was observed weakening 0.22% to Rp17,403/US.ThispositionindicatedadeeperweakeningcomparedtothemorningopeningatRp17, 380/US. However, data on strengthening economic growth and easing inflation are hoped to curb market volatility. The government and the Financial Services Authority (OJK) will also hold two press conferences today. The fragile ceasefire between the United States and Iran appeared on the brink of collapse on Monday, when the United Arab Emirates was attacked by Iranian drones and missiles, while the US stated it had sunk Iranian vessels in the Strait of Hormuz. In an interview with Fox News on Monday, President Donald Trump warned Iran that the country would be “wiped off the face of the earth” if it targeted US ships protecting commercial vessels transiting the strait. Trump also posted on Truth Social that a South Korean cargo ship had been targeted by Iranian gunfire in those waters. “Perhaps it’s time for South Korea to join this mission!” he wrote. Global stock indices closed sharply lower on Monday, while oil prices rose, as investor concerns grew that the war’s impact on the global economy could worsen or last longer. Domestically, the Central Statistics Agency (BPS) reported that Indonesia’s economy in the first quarter of 2026 recorded growth of 5.61% year-on-year (yoy). This growth rate was higher than the 5.39% in the fourth quarter of 2025 and the same period the previous year, or 4.87% yoy in the first quarter of 2025. “Indonesia’s economic growth is 5.61% in the first quarter of 2026,” said BPS Chief Amalia Adininggar Widyasanti during a press conference at BPS headquarters in Jakarta, Tuesday (5 May 2026).