So, like, apparently the Indonesian Stock Price Index (IHSG) has a chance to, like, go up again this week? Yeah, I guess it’s all because of two main things – the direction of Bank Indonesia’s interest rates and the MSCI Index rebalancing. By the end of trading on Friday, the IHSG went up by 0.94 percent, adding like 66.36 points to reach 7,106.52. Throughout the week, the index saw a significant increase of 2.60 percent.
According to this dude named Angga Septianus from PT Indo Premier Sekuritas (IPOT), the index managed to stay above a psychological level because foreign investors poured in more than Rp 5 trillion. He’s like, “Let’s see if the foreign buying spree continues this week.” He also mentioned how closely linked foreign fund flows are to the IHSG. So, traders are urged to ride the wave of this upward momentum. Looks like the recent strength of the IHSG was mainly supported by two sectors – IDX Infra and IDX Energy. IDX Infra got a boost from BREN stocks due to some IPO thing, while IDX Energy saw gains from coal stocks like ADRO and PTBA as global trade tensions eased.
But hey, here’s the kicker – the technology sector is still dragging the IHSG down. IDX Techno is like, the main culprit for the drop because of GOTO stock falling after that whole GRAB and GOTO merger rumor got debunked. As we head into the trading week of May 19–23, Angga points out two key catalysts to watch – BI’s interest rate decision and the MSCI rebalancing. Traders better keep an eye on BI’s decision this Wednesday, which is expected to remain unchanged. However, there’s a chance of a rate cut due to the strengthening rupiah and weakening domestic purchasing power.
He also mentioned how the MSCI rebalancing could give the IHSG an extra push, especially since foreign portfolio weightings on the IHSG are still below the MSCI benchmark. This rebalancing thing could really amp up the IHSG’s movement in the future. For those looking to navigate this market dynamic, IPOT suggests some top stocks that can be bought using their Booster Capital feature. They’re also introducing IPOT Bond, a retail bond investment platform with competitive prices. One of their stock recommendations is PTBA, with a buy price of Rp 2,860 and a target of Rp 3,000. Apparently, PTBA broke through resistance levels with increased volume and accumulation. Plus, with China and the US agreeing on lower import tariffs, the demand for Indonesian coal in April 2025 improved compared to the first three months of the year.
Another pick is TINS, with an entry price of Rp 1,175 and a target of Rp 1,250. TINS received directives from MIND ID, the Mining Industry SOE Holding, to speed up the development of rare earth elements and downstream processes. And for the telecommunications sector, TLKM is recommended at Rp 2,740 with a target of Rp 2,860. Foreign investors are apparently making some moves with a net purchase of Rp 73 billion as tensions between the US and China ease, affecting global trade.
If you’re into low-risk investment diversification, IPOT suggests buying FR0059 bonds through IPOT Bond. Bonds could be a solid choice for low-risk diversification, especially with expectations of decreasing interest rates. When interest rates drop, bond prices tend to rise. So, yeah, that’s the deal with the IHSG and the stock market this week. It’s like a rollercoaster ride, but hey, that’s just how the game goes, right?
