Reasons Behind the 2% Surge in the IDX Composite

The Indonesia Composite Index (IHSG) began its first trading session of June with a significant increase on Tuesday (2/6/2026), reversing the downward pressure experienced since last month. The index jumped, supported by the performance of conglomerate stocks that rebounded after previously facing deep declines.

At the start of trading, the IHSG surged by 82.62 points or 1.35% to the 6,210 level. The index fluctuated between 6,119.97 and 6,153.71 before eventually leaping 2%, or an increase of 122 points, to the 6,249.98 level.

Transaction value at the start of trading was recorded at Rp 4.2 trillion, with a volume of 5.91 billion shares and a frequency of 374,000 transactions. A total of 340 stocks were recorded as gaining, 237 declining, and 156 remaining stagnant.

Conglomerate issuers, particularly those belonging to the Barito Group, were the most heavily traded this morning. Barito Group stocks also surged and acted as the primary drivers of the IHSG’s performance today. CUAN shares hit the upper auto-rejection limit (ARA), BREN nearly reached ARA, PTRO surged by more than 10%, while BRPT and TPIA gained nearly double digits, and TPIA strengthened by 3%.

Sinar Mas Group’s coal-related issuer (DSSA), which had plummeted by nearly 90% this year, strengthened significantly and hit the ARA limit. Additionally, AMMN, owned by the Salim Group, also jumped today. Other conglomerate stocks, ranging from the Bakrie Group to those owned by Happy Hapsakor, were also recorded as gaining during today’s trade.

According to Refinitiv data, the majority of trading sectors strengthened, with the highest increases recorded in infrastructure, basic materials, and energy. Conversely, the technology, consumer staples, and healthcare sectors experienced corrections.

BREN was the primary driver of the IHSG’s performance today, contributing 28 index points, followed by BRPT and BBCA with 12 index points each. Other conglomerates, such as DSSA and AMMN, also contributed 10 index points to the gains. Other issuers supporting the IHSG included BBRI, CUAN, BMRI, AMRT, and VKTR.

Entering the first week of June 2026, market participants will closely monitor several key macroeconomic data releases from both domestic and international sources. Furthermore, there are strategic domestic policy implementations and global geopolitical dynamics to watch, particularly regarding State-Owned Enterprises (SOEs) involved in exports.

Starting 1 June 2026, the government is implementing a series of new policies targeting the management of export foreign exchange and the stability of the foreign exchange market. One of the most prominent is the formation of PT Danantara Sumber Daya Indonesia (DSI) as a single-window export mechanism for three strategic commodities: coal, palm oil, and ferroalloy. These three commodities contributed exports worth US$66.13 billion in 2025, representing approximately 23.4% of total national exports.

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that this policy is part of an effort to improve natural resource governance and strengthen the supervision of export transactions, ensuring that recorded export values reflect actual transactions. The government will conduct evaluations every three months during the transition period before full implementation on 1 January 2027.

Simultaneously, the government has begun enforcing new regulations regarding Export Proceeds from Natural Resources (DHE SDA) through Government Regulation (PP) Number 21 of 2026. Non-oil and gas exporters are now required to deposit 100% of their DHE into specific domestic accounts for a minimum of 12 months. For the oil and gas sector, the placement requirement is set at 30% for at least three months. The government also limits the conversion of foreign exchange to Rupiah to a maximum of 50% and is preparing tax incentives, such as lower Income Tax rates, for compliant exporters. This policy is expected to strengthen domestic foreign exchange reserves and increase the benefits of exports to the national financial system.

Meanwhile, Asia-Pacific stock markets opened lower on Tuesday (2/6/2026) amid rising uncertainty regarding peace negotiations between the United States and Iran. According to CNBC, this sentiment has led investors to be cautious, even though major Wall Street indices hit record highs in previous trading. In Japan, the Nikkei 225 index opened down 0.52%, while the Topix corrected further by 0.98%. Pressure was also felt in South Korea, with the Kospi index down 0.32% and the Kosdaq small-cap index plunging 2.5%. The Australian market also moved into the red, with the S&P/ASX 200 declining 0.67%. Hang Seng futures in Hong Kong stood at 25,207, lower than the previous close of 25,398.18. Market participants are closely monitoring the latest developments in US-Iran relations after US President Donald Trump downplayed the possibility of failed peace talks with Tehran.