Flooring Guide by Cinvex – , JAKARTA – Indonesia’s Composite Stock Price Index (IHSG) once again hit a new all-time high (ATH) today, Wednesday, September 17, 2025. This significant surge in the IHSG coincided with both a reduction in the BI Rate and a cabinet reshuffle.
According to the Korea Investment & Sekuritas Indonesia (KISI) Research Team, market participants largely viewed the cabinet reshuffle undertaken by President Prabowo Subianto as a positive signal for political stability and governmental solidity.
“Generally, this reshuffle was positively received, with expectations that it will strengthen the government’s economic team,” stated KISI Sekuritas Research Team on Wednesday, September 17, 2025.
Bank Indonesia Cuts BI Rate to 4.75%, IHSG Breaches 8,000 Mark
However, KISI added that the market euphoria was not solely attributable to the reshuffle but was also a result of a combination of other macroeconomic factors.
KISI further assessed that the IHSG’s rally, which saw it surpass the 8,000 level, was primarily driven by the sentiment surrounding Bank Indonesia’s benchmark interest rate cut. This is because a reduction in the BI Rate directly impacts the cost of funds and enhances investor appetite for riskier assets.
“The reshuffle acted more as a supportive sentiment rather than the primary driver of the IHSG rally,” KISI emphasized.
Breaching All-Time Highs, IHSG Closes Soaring to 8,025.18
Following the cabinet reshuffle, the KISI Research Team anticipates that the stock market’s focus will likely shift towards upcoming sentiments. These include the direction of fiscal policy for the 2026 State Budget Draft (RAPBN), the outlook for a Fed Rate cut later this year, and the continuation of the domestic economic stimulus package dubbed 8+4+5.
“All these factors will be closely watched by investors to determine the future trajectory of the IHSG,” the team added.
To provide context, the IHSG concluded trading today, Wednesday, September 17, 2025, with a robust gain of 0.85%, settling at 8,025.17. A total of 44.38 billion shares were actively traded, with transaction values soaring to Rp18.27 trillion.
Market breadth showed strength, with 360 stocks advancing into the green zone, while 318 declined into the red. Another 124 stocks remained unchanged. The IHSG’s market capitalization also expanded, reaching Rp14,545 trillion today.
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Summary
Indonesia’s Composite Stock Price Index (IHSG) reached a new all-time high of 8,025.17 on September 17, 2025, breaching the 8,000 mark with a 0.85% gain. This significant surge coincided with both a reduction in the BI Rate and a cabinet reshuffle. The KISI Research Team viewed the cabinet reshuffle positively, expecting it to strengthen the government’s economic team and political stability.
However, KISI emphasized that Bank Indonesia’s decision to cut its benchmark interest rate to 4.75% was the primary driver for the IHSG rally, as it directly boosts investor appetite for riskier assets. The reshuffle acted more as a supportive sentiment rather than the main cause of the rally. Looking ahead, market focus is expected to shift towards the 2026 State Budget Draft, the outlook for a Fed Rate cut, and ongoing domestic economic stimulus packages.