Reasons Behind the Jittery IHSG: Green in the Morning, Red by Afternoon
The Jakarta Composite Index (IHSG) closed the session in the red zone on Monday (20/4/2026). The index settled at 7,621.58, down 12.42 points or -0.16%.
A total of 387 stocks declined, 305 rose, and 267 remained unchanged. Trading value reached Rp 9.36 trillion by midday, involving 23.1 billion shares in 1.49 million transactions. Market capitalisation also fell to Rp 13,571 trillion.
Two banking stocks were the most heavily traded. BBCA recorded total transactions of Rp 1.17 trillion and BBRI Rp 903.9 billion. Additionally, Bakrie Group emitter BRMS was heavily traded with a value of Rp 715.3 billion.
According to Refinitiv, these three stocks also acted as supports for the IHSG to prevent a deeper fall. However, they were not strong enough to withstand the correction in Prajogo Pangestu emitters.
BRPT, which fell 4.93% to 2,120, eroded the IHSG by 6.19 points. Then BREN, down 2.26%, dragged the IHSG by 5.53 index points. Other Prajogo emitters that also entered the list of top laggards this midday were CUAN (-2.2 index points) and TPIA (-2.07 index points).
For information, the IHSG opened trading this morning with a 0.39% gain. Although it briefly dipped into the red zone at the start of trading, the IHSG managed to rebound above.
However, towards the end of session 1, the IHSG could not stem the pressure and ended in the red zone.
Indonesia’s financial markets are expected to remain volatile throughout this week after Iran re-blockaded the Strait of Hormuz following a temporary ceasefire announcement.
Beyond the war dynamics, market participants will focus on Bank Indonesia’s interest rate decision to be announced this Wednesday.
Shipments through the Strait of Hormuz came to a complete halt on Sunday after Iran reasserted control over the strategic waterway, a key to global energy supplies, just days before a fragile ceasefire with the United States was scheduled to end.
Iran’s chief negotiator said the latest talks with the US showed progress, while President Donald Trump described “very good conversations” with Tehran.
However, neither side provided specific details. Iran’s chief negotiator, Mohammad Baqer Qalibaf, said the two countries still have major differences on nuclear issues and the Strait of Hormuz, the two main hurdles in negotiations.
The United States stated it had seized an Iranian cargo ship attempting to break the blockade, while Iran threatened retaliation. This situation has raised concerns that the ceasefire between the two countries could collapse before the end of this week.
Iran also rejected a new round of peace talks planned by the US in Islamabad, making peace prospects even more uncertain.
This tension has caused oil prices to surge. Brent crude rose about 7% to US$96.85 per barrel, while S&P 500 futures fell 0.9% at the start of Asian trading.
The war, now entering its eighth week, is said to have triggered the most severe global energy supply shock in history, particularly due to disruptions in the Strait of Hormuz, a vital route for about 20% of the world’s oil supply.
On Saturday, Iran, which had previously announced it would allow ships to pass through Hormuz, reversed course by accusing Washington of violating the ceasefire agreement by maintaining a blockade on Iranian ports.
Domestically, the most anticipated agenda for market participants is the announcement of the Bank Indonesia Board of Governors Meeting (RDG BI) results on Tuesday and Wednesday this week (21-22/4/2026). In the previous month’s meeting, BI decided to maintain the policy rate or BI Rate at 4.75%.
This move aligns with the central bank’s main focus to mitigate global spillover impacts and maintain rupiah exchange rate stability. The rupiah’s position previously came under pressure, touching Rp16,985 per US dollar in mid-March, triggered by global risk aversion sentiment.
BI will also consider domestic inflation dynamics, which rose to 4.76% year-on-year in February. Given the solid realisation of fourth-quarter 2025 economic growth at 5.39%, Bank Indonesia is assessed to still have adequate policy space to manage monetary stability.