Flooring Guide by Cinvex The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (IDX) began Friday’s trading session with a notable gain, as market participants closely monitored ongoing negotiations between the United States and Iran. This early upward momentum saw the benchmark index open stronger, signaling cautious optimism among investors.
Specifically, the IHSG advanced by 24.43 points, or 0.32 percent, reaching a position of 7,645.81. Concurrently, the LQ45 index, which tracks the top 45 blue-chip stocks, also recorded an increase of 1.16 points, or 0.15 percent, to settle at 758.48. These movements underscore a positive, albeit measured, start to the trading day in the Indonesian financial markets.
Providing an expert perspective, Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, offered his technical analysis from Jakarta. “Based on technical analysis, we see the IHSG having the potential for a limited weakening, with support and resistance levels between 7,500 and 7,850. While there is potential for strengthening, it remains limited,” Nico explained, advising market participants to remain vigilant.
Internationally, geopolitical developments continued to influence market sentiment. US President Donald Trump announced that America had reached an agreement with Iran, with discussions slated to continue over the weekend. However, Trump also made unverified claims, stating that Iran had consented to nuclear terms, agreed to surrender nuclear materials—including pledging not to possess nuclear weapons—and would facilitate the opening of the Strait of Hormuz.
In a related regional development, President Trump also sanctioned a 10-day ceasefire between Israel and Lebanon, a move aimed at de-escalating broader tensions in the area. To further address these delicate issues, Trump plans to invite Lebanese President Joseph Aoun and Israeli Prime Minister Benjamin Netanyahu for discussions within the coming week, highlighting ongoing diplomatic efforts to foster stability.
Closer to home, Indonesia received a significant boost from an encouraging domestic report. Finance Minister Purbaya Yudhi Sadewa confirmed that S&P Global has maintained Indonesia’s credit rating at BBB (investment grade) with a stable outlook. This crucial rating reflects a relatively low risk of default, reinforcing confidence in the nation’s economic stability.
From a macro perspective, Nico emphasized the positive implications of S&P’s decision for Indonesia’s financial markets. “This decision acts as a significant positive sentiment, bolstering global investor confidence, particularly among institutional investors who often require an investment grade rating,” he stated. A stable rating is also expected to help contain any increases in government bond (SBN) yields, thereby ensuring that the cost of state funding remains manageable amidst global economic pressures.
Looking at the capital market, Nico further noted that the stable rating would encourage capital inflow into both stocks and bonds. This would be particularly impactful if combined with disciplined fiscal trends and improving economic growth, creating a robust environment for investment. Sectors sensitive to interest rates, such as banking and property, are also poised to receive positive sentiment due to expectations of stable funding costs, fostering growth within these key areas.
However, Nico also highlighted a key concern from S&P Global: the debt interest payment ratio, which remains above 15 percent, poses a medium-term risk. He warned, “If not balanced by a sustained increase in state revenues, this could limit the government’s fiscal space in the future,” underscoring the need for prudent financial management to ensure long-term sustainability.
Providing a broader market context, European stock exchanges displayed varied performance on Thursday (April 16). The Euro Stoxx 50 saw a slight dip of 0.04 percent, while the UK’s FTSE 100 gained 0.29 percent. Germany’s DAX index also posted a gain of 0.36 percent, contrasting with France’s CAC 40, which declined by 0.14 percent. This mixed global backdrop further illustrates the complex interplay of factors influencing markets worldwide.