US-Iran Peace Deal Boosts IHSG

The Jakarta Composite Index (IHSG) began the week’s trading with a significant rally. Positive global market sentiment, particularly regarding the peace agreement between the United States (US) and Iran, boosted investor appetite for risk assets. The IHSG opened up 111.07 points, or 1.85 percent, at 6,118.73. Meanwhile, the LQ45 index of blue-chip stocks strengthened by 13.38 points, or 2.24 percent, to 601.83. Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, said the improving global sentiment opened opportunities for a domestic stock market rally. “Kiwoom Research is quite optimistic in recommending a gradual average up strategy,” Liza stated in her analysis in Jakarta, Monday (15/6/2026). According to her, market participants’ attention over the weekend was focused on geopolitical developments in the Middle East. US President Donald Trump announced that a peace deal between the US and Iran had been completed and was scheduled to be formally signed in Switzerland on 19 June 2026. Iranian Deputy Foreign Minister Kazem Gharibabadi also confirmed that the memorandum of understanding (MoU) between the two countries had been finalised. The agreement includes the reopening of the Strait of Hormuz, the lifting of the US naval blockade against Iran, the release of USD 25 billion in previously frozen Iranian assets, and Iran’s commitment not to develop nuclear weapons during the ongoing negotiation process. However, Iran stressed that management of the Strait of Hormuz remains under the authority of Iran and Oman, including the possible imposition of navigation and security service fees. Liza assessed that these developments eased market concerns over potential disruptions to global energy supplies, which had been a source of global economic uncertainty. “The improving geopolitical situation reduces worries about global energy supply disruptions and directly increases investors’ risk appetite,” Liza said. Besides geopolitical developments, investor attention this week is also focused on the US central bank, the Federal Reserve (The Fed), meeting chaired for the first time by Kevin Warsh. The market expects The Fed to maintain its benchmark interest rate in the range of 3.50 percent to 3.75 percent. Domestically, market participants are observing the World Bank’s projection that Indonesia’s State Budget (APBN) deficit will remain at 2.8 percent of Gross Domestic Product (GDP) in 2026 and 2027 before declining to 2.7 percent in 2028. This projection is influenced by energy subsidy pressures, the implementation of priority government programmes, and an increase in debt interest burdens expected to rise from 18.7 percent to 19.2 percent of total state revenue by 2028. In the financial sector, Bank Indonesia and the People’s Bank of China (PBOC) expanded cooperation through an enhanced Bilateral Currency Swap Agreement (BCSA), expansion of local currency transactions, the establishment of a Renminbi Clearing Arrangement in Indonesia, and the launch of an Indonesia-China cross-border QR payment system. Meanwhile, Danantara, through PT Danantara Investment Management (DIM), issued its inaugural global bonds worth USD 1.5 billion as part of a USD 5 billion Global Medium Term Notes (GMTN) programme. At the end of last week’s trading, the majority of global stock markets also closed higher. The Euro Stoxx 50 index rose 2.16 percent, the UK’s FTSE 100 strengthened 1.63 percent, Germany’s DAX rose 1.76 percent, and France’s CAC 40 gained 1.83 percent. In the United States, the Dow Jones index rose 0.17 percent, the S&P 500 gained 0.50 percent, and the Nasdaq Composite added 0.31 percent. Meanwhile, Asian stock markets in morning trade today also moved in positive territory. The Nikkei index rose 5.44 percent, the Shanghai Composite gained 0.94 percent, the Hang Seng rose 0.43 percent, and the Strait Times strengthened 1.14 percent.