September 23, 2026 | 01:53 pm
TEMPO.CO, Jakarta - The Indonesia Stock Exchange Composite Index (JCI) rose in early trading Wednesday as investors took a wait-and-see approach ahead of Bank Indonesia’s (BI) monetary policy meeting.
The JCI opened 20.91 points, or 0.33 percent, higher at 6,297.95. The LQ45 index, which tracks 45 leading stocks, rose 1.56 points, or 0.25 percent, to 627.17.
“The JCI is expected to test the 6,186-6,200 level in Wednesday’s trading,” Phintraco Sekuritas Head of Research Ratna Lim said in a research note in Jakarta on Wednesday.
Domestically, investors are awaiting the outcome of BI’s Board of Governors Meeting, with the central bank widely expected to keep its benchmark BI Rate at 5.75 percent.
The Federal Reserve previously raised its benchmark interest rate by 25 basis points to 4 percent, narrowing the spread between the BI Rate and the federal funds rate to 1.75 percentage points from 2 percentage points.
Although the spread has narrowed, it remains wider than the average spread over the past three years, which ranged from 0.75 to 1.25 percentage points.
“The widening spread this year is intended to provide a sufficiently attractive interest rate differential for foreign investors to strengthen the stability of the rupiah,” Ratna said.
BI is therefore expected to raise its benchmark rate again only if the rupiah continues to weaken or the Federal Reserve resumes its rate-hike cycle.
Ratna also expects BI to continue supporting economic growth and avoid aggressive rate increases unless the rupiah weakens rapidly or inflation rises above the central bank’s target.
Meanwhile, falling oil prices are expected to ease inflationary pressures. Investors are also awaiting credit growth data, which is expected to accelerate to 15 percent year on year in August.
Global Market Factors
Geopolitical tensions remained a key focus for investors as the high-level debate of the United Nations General Assembly got underway.
US President Donald Trump said in his UN General Assembly address that the United States and Iran would reach an agreement after the midterm elections.
Iran was previously reported to have offered to reopen the Strait of Hormuz within seven days in exchange for a de-escalation of US military activity. Saudi Arabia also plans to reopen its pipeline route for oil shipments this week.
Trump also said the United States had held a three-hour meeting with an Iranian delegation on the sidelines of the UN General Assembly in New York.
Oil prices fell about 1 percent on Tuesday, September 22, closing below US$100 a barrel after Trump said the United States had held talks with Iran.
Oil prices have fallen more than 4 percent so far this week but remain up more than 9 percent this month. Meanwhile, the US 10-year Treasury yield fell by less than 1 basis point to 4.959 percent as investors awaited further signals about the US economy.
European markets were mixed at Tuesday’s close. The UK's FTSE 100 fell 0.29 percent, while Germany’s DAX rose 0.02 percent, France’s CAC 40 gained 0.20 percent, and the Euro Stoxx 50 advanced 0.08 percent.
Wall Street and Asian Markets
US stocks were mixed on Tuesday. The S&P 500 fell 0.01 percent to 7,764.64, the Nasdaq Composite rose 0.45 percent to 27,244.28, and the Dow Jones Industrial Average declined 0.36 percent to 51,863.69.
Asian stocks were mostly lower in early trading Wednesday. The Shanghai Composite fell 0.37 percent to 3,937.33, the Hang Seng Index declined 0.84 percent to 24,877.76, the Kospi rose 0.21 percent to 7,032.79, Malaysia’s Kuala Lumpur Composite Index slipped 0.05 percent to 1,682.60, and the Straits Times Index fell 0.05 percent to 5,720.60.
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