JCI Continues Strengthening, Triggered by Investor Response to Domestic Policies

The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange continued to strengthen on Wednesday, triggered by positive investor response to policy measures related to the capital market and monetary conditions domestically. The IHSG opened down 2.59 points, or 0.05 percent, at 5,744.06, but reversed course to gain 132.84 points, or 2.31 percent, to 5,879.49 in trading by 09:30 WIB. Kiwoom Research assessed that this rally has managed to temporarily halt market panic, although factors that triggered previous pressure, such as foreign fund outflows, rising sovereign risk premiums, and concerns about fiscal conditions, have not completely disappeared. The IHSG’s revival will meet its nearest challenge around the 5,900 mark, acting as MA10 resistance, with support at 5,550, said Kiwoom Sekuritas Head of Research Liza Camelia Suryanata. The IHSG recorded a spectacular relief rally, soaring 7.57 percent, or 404 points, to 5,722 in Tuesday’s trading, after touching this year’s low of 5,317 the day before.

Meanwhile, President Prabowo Subianto received a routine report from the National Economic Council, led by Luhut Binsar Pandjaitan, regarding the economic condition, an evaluation of the Free Nutritious Meal Programme, the acceleration of AI-based GovTech integration which has connected 80 percent of government systems and eight ministries or agencies, as well as vigilance towards global risks, especially developments in the Strait of Hormuz. Adding a new challenge, Pertamax (RON 92) fuel prices will officially rise by 32 percent to Rp16,250 per litre from Rp12,300 per litre starting 10 June 2026, while Pertamax Green 95 will rise 31.7 percent to Rp17,000 per litre from Rp12,900 per litre, following the surge in global oil prices, although Pertalite and biodiesel prices are confirmed to remain unchanged. From overseas, market participants are focused on the conflict between Iran and the United States and US inflation data. Hopes for peace briefly increased after Iran and Israel halted attacks on Monday, with US President Donald Trump even stating that a nuclear deal with Iran has reached its final stage and the Strait of Hormuz could be opened within two to three days.