JCI Weakens on Friday Morning to 6,161, Pressured by MSCI and BI Rate Sentiment

The Jakarta Composite Index (IHSG) at the Indonesia Stock Exchange opened weaker on Friday. The national benchmark index corrected 10.88 points, or 0.18 percent, to 6,161.46. The LQ45 index of 45 leading stocks also fell 2.37 points, or 0.38 percent, to 614.55. Today’s IHSG movement is predicted to be volatile due to a combination of contradictory domestic and global sentiment. From a technical perspective, Kiwoom Sekuritas Head of Research Liza Camelia Suryanata advised investors to watch the nearest support level at 6,055.

The Indonesian capital market is facing serious challenges after MSCI downgraded Indonesia’s Information Flow score from ‘+’ to ‘-’. The downgrade was triggered by issues of share ownership transparency, free float, and coordinated trading behaviour that disrupts fair price formation. The situation is compounded by Bank Indonesia’s decision to raise the BI Rate by 25 basis points to 5.75 percent, the third increase in a month, aimed at maintaining rupiah stability and ensuring inflation remains within the 2.5±1 percent target range for the 2026-2027 period.

Globally, market sentiment is divided. On one hand, the peace agreement between the United States and Iran in Versailles, France, provides a boost for risk assets as it could lower global energy prices. On the other hand, Kevin Warsh’s leadership at the Federal Reserve reinforces the higher-for-longer narrative. The latest dot plot indicates the possibility of additional rate hikes this year, strengthening the US dollar and pressuring emerging markets including Indonesia. Investors are now awaiting the MSCI Annual Market Classification Review announcement on Wednesday (24/6) to gauge the direction of future foreign capital flows.