Flooring Guide by Cinvex – , JAKARTA – The Jakarta Composite Index (IHSG) experienced a 1.37% correction over the past week, falling from 9,075 to 8,951, with foreign funds registering a net sell of Rp3.25 trillion. This downturn signals a period of heightened caution among investors, influenced by a confluence of global and domestic factors.
Liza Camelia Suryanata, Head of Equity Research at Kiwoom Sekuritas, has outlined the pivotal stimuli and sentiments expected to dominate market attention in the coming week. Globally, market participants are keenly awaiting the Federal Open Market Committee (FOMC) meeting scheduled for January 27–28, 2026.
“The post-decision press conference, in particular, is typically a primary determinant of emerging market risk appetite and the trajectory of US dollar yields, carrying direct implications for the Rupiah and the IHSG,” Liza explained to Bisnis, in a statement quoted on Sunday, January 25, 2026.
Liza further noted that during the IHSG’s weakening last week, the Rupiah briefly touched a record low of approximately Rp16,985 per US dollar. This depreciation, combined with investor concerns regarding the credibility of fiscal policy and the independence of the central bank, has pushed up the risk premium for Indonesian assets. Such elevated risk perceptions have, in turn, spurred foreign fund outflows and contributed to the IHSG’s decline.
Rupiah Depreciation and Foreign Net Sell Heavily Burdened the IHSG’s Performance Last Week.
Still from the United States, markets will also closely monitor the release of the Personal Consumption Expenditure (PCE) price index, the Federal Reserve’s preferred measure of inflation. Beyond inflation data, key activity indicators such as the Purchasing Managers’ Index (PMI) and the ongoing global earnings season are expected to unfold, potentially shifting regional equity sentiment.
Shifting focus to Asia, Liza highlighted that the dynamics of Japanese interest rates and the movements of Japanese Government Bonds (JGBs)/Yen remain highly sensitive. This sensitivity stems from the Bank of Japan’s recent decision to hold interest rates at 0.75% while adopting a more hawkish tone and revising its economic projections upwards. Concurrently, volatility in the Japanese bond market has intensified amidst emerging political-fiscal issues.
“Domestically, the most anticipated sentiments extend beyond mere economic data releases. Investors are also seeking consistency in policy communication, a firm commitment to fiscal discipline, the unwavering independence of Bank Indonesia, and concrete measures to stabilize the Rupiah through monetary instruments and market interventions. These critical factors will ultimately determine the direction of Indonesia’s risk premium in the short term,” she concluded.