The Composite Stock Price Index (IHSG) opened up 39.71 points or 0.44 percent to 9,072.29 on Thursday morning, amid market concerns over threats to the independence of the US Federal Reserve due to President Donald Trump's attacks on Chairman Jerome Powell. These worries are reinforced by Producer Price Index (PPI) data showing price pressures, potentially leading the Fed to hold or raise interest rates. However, analysts view this strength as a signal of an investment shift toward a supercycle supporting Indonesia's stock market throughout 2026.
At the opening of trading on the Indonesia Stock Exchange (BEI) in Jakarta on Thursday (January 15, 2026), the IHSG rose 39.71 points or 0.44 percent to 9,072.29. The LQ45 index also strengthened by 3.84 points or 0.44 percent to 885.92. This gain occurred despite market concerns over threats to the Federal Reserve's independence, following Trump's calls for credit card interest rate reforms and direct attacks on Powell. Reports indicate the US Department of Justice is conducting a criminal investigation into Powell, prompting support from global central bankers.
US PPI data reveals inflationary pressures, raising risks that the Fed might hold or hike rates amid economic slowdown—a scenario disliked by stock investors. Geopolitical tensions between Iran and the US, plus Greenland issues, add global uncertainty, leading investors to reduce risk exposure even as US economic data remains solid.
Domestically, Indonesia is positioned as a prime destination in the global energy and metals price upcycle. Lotus Andalan Sekuritas Research Team stated, “This rally is not just a technical rebound, but a shift in investment regime toward a supercycle phase that could support Indonesia's stock market throughout 2026.” Rising government bond (SBN) yields alongside the IHSG confirm a rotation from bonds to stocks, a hallmark of an early commodity-based bull market.
The previous day, Wednesday (January 14), Wall Street weakened: Dow Jones fell 0.09 percent to 49,149.75, S&P 500 dropped 0.53 percent to 6,926.99, and Nasdaq declined 1.07 percent to 25,465.94. Asian markets this morning were mixed: Nikkei down 0.80 percent to 53,908.39, Shanghai down 0.16 percent, Hang Seng up 0.38 percent. The rupiah strengthened to Rp16,851 per US dollar.
Analysts predict potential correction, with support at 8,950-9,000 and resistance at 9,050-9,070. Despite the uptrend, the overbought RSI indicator risks profit-taking.
