IHSG shows positive momentum amid strengthening Rupiah

The Indonesia Composite Stock Price Index (IHSG) showed positive momentum at the start of the week, opening higher on Monday, August 24, 2026. This follows a strong performance in the previous week, where the index gained 1.93 percent to close at 6,525. Analysts suggest the index may continue to strengthen toward targets between 6,600 and 6,716, provided it remains above the psychological support level of 6,500.

Several factors are driving this market activity, including a strengthening Rupiah, which rose 0.75 percent over the week to reach approximately Rp17,694 per USD. This appreciation is partly attributed to US Treasury buyback policies. Additionally, significant foreign net inflows and positive banking sector performance have bolstered investor confidence. Major banks such as BNI, BRI, and Mandiri reported strong gains and positive earnings growth.

Despite the bullish trend, market participants are advised to remain cautious of potential profit-taking and external pressures, such as global interest rate prospects and geopolitical tensions. Investors are also monitoring the impact of the FTSE Russell semi-annual review on local stock classifications.