Flooring Guide by Cinvex – , JAKARTA – The Jakarta Composite Index (IHSG) today, Thursday (August 28, 2025), was unable to sustain its all-time high of 8,022.76 during the first trading session. Despite this, the index managed to close in the green, settling at 7,942.09 after gaining 0.20% or 15.91 points for the day. Earlier, it was noted to have held at 7,952.09 at an earlier closing.
Examining sectoral performance today, the IDXInfra index stood out as the sole laggard, closing in the red with a -0.79% decline to 1,918.14. Conversely, the IDXIndust sector emerged as the strongest performer across both sessions, surging by 2.58% to 1,258.34. Following closely, the IDXTechno sector demonstrated robust growth, advancing 1.86% to reach 10,596.10.
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Meanwhile, on a year-to-date basis up to Wednesday (August 27, 2025), both consumer cyclicals and consumer non-cyclicals acted as significant headwinds for the IHSG’s progress. These two stock sectors experienced year-to-date declines of 3.13% and 2.39% respectively, at a time when other sectors showed growth. Consequently, the IHSG closed at 7,936.17 on that day.
Adrian Joezer, Head of Equity Research at Mandiri Sekuritas, shed light on the challenges faced by some companies within the consumer non-cyclicals sector this year. He noted that a surge in raw material prices has eroded their financial performance and margins.
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“We must also consider the profit performance of each issuer, where there have been increases in raw material prices, such as palm oil and others. Some issuers may have been impacted on the margin side,” Joezer explained during the Mandiri Macro and Market Brief 3Q25 Indonesia Economic Outlook forum on Thursday (August 28, 2025).
Looking ahead, Joezer believes that government spending over the next 12 months could serve as a positive catalyst. Initiatives such as the free nutritious meal program (MBG) and other social expenditures are expected to inject vitality into the economy. For the consumer cyclicals sector, whose products primarily cater to secondary needs, Adrian attributes its underperformance to weakening purchasing power.
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“Consumer cyclicals typically see underperformance when people become more defensive, so it’s understandable that this sector is experiencing it this year,” he elaborated. He added that the consumer cyclicals sector will likely require a longer period to reach a significant turning point that could propel its stock performance and contribute to broader IHSG growth.
Regarding the IHSG’s potential for continued gains, Adrian highlighted that the stock market index has already shown substantial progress, primarily driven by a rally in stocks outside the traditional IDX30 constituents. This dynamic contributed to today’s IHSG gain.
Furthermore, the current stock market environment is benefiting from an era of low interest rates. Bank Indonesia is likely to cut its BI Rate again this year, and the US Federal Reserve is also widely expected to trim interest rates in September. This scenario naturally makes stocks more appealing to investors compared to other investment instruments.
“If we look at several instruments, their yields are declining, such as the 10-year SBN yield now around 6.3%, and the SRBI level at approximately 5.05%. This makes equities a very attractive instrument because their dividend yield is nearly 6%,” Joezer concluded, underscoring the compelling value proposition of stocks in the current climate.
Summary
The Jakarta Composite Index (IHSG) closed up 0.20% at 7,942.09 on August 28, 2025, after failing to maintain its all-time high of 8,022.76 during the first session. On this day, the IDXInfra sector was the sole laggard with a -0.79% decline, while IDXIndust and IDXTechno showed robust growth.
Year-to-date, consumer cyclicals and non-cyclicals have significantly dragged down the IHSG due to rising raw material prices and weakening purchasing power, as noted by Mandiri Sekuritas. Expert analysis suggests government spending could be a future catalyst for the economy. Furthermore, anticipated interest rate cuts and declining yields in other investment instruments make equities, with their attractive dividend yields, a compelling option for investors.