Indonesia's IHSG climbs over 1% in early July as banks boost index amid rupiah weakness

Indonesia’s benchmark stock index (IHSG) surged more than 1% on July 2, reaching the 5,760‑5,806 range, buoyed by a rally in large‑cap banks – BBCA (+17.69 pts), BMRI (+9.82 pts), BBRI (+4.39 pts) and BBNI (+2.64 pts) – and gains in conglomerate and mining stocks. Foreign investors continued a net sell of roughly Rp 577 bn, with Bank Rakyat Indonesia and Bank Mandiri among the biggest sellers.

At the same time, the rupiah weakened toward the psychological Rp 18,000 per U.S. dollar level, trading around Rp 17,990‑18,050. The depreciation followed Indonesia’s first trade‑deficit since 2020, a US$1.61 bn shortfall in May driven by higher imports, especially oil and gas. Inflation remained around 3.3% year‑on‑year. Market sentiment was supported by easing Middle‑East geopolitical tensions that eased oil prices and by comments from U.S. Federal Reserve officials suggesting lower inflation risk.

Overall trading volume on the Jakarta Stock Exchange was about Rp 11‑12 trillion, with the LQ45 index also posting gains. The developments come as the government pushes the International Financial Centre Indonesia (PFII) framework to attract foreign capital.