Jakarta Stocks Defy Global Downturn as IHSG Surges Past 9,000

KBRN, Jakarta: The Indonesia Stock Exchange (IDX) defied a global downturn on Thursday morning, January 14, 2026, as the Composite Stock Price Index (IHSG) surged past the 9,000 mark.

Investors appeared to favor Indonesia’s growing role as a global energy and metals hub over mounting concerns about the U.S. Federal Reserve's independence under the current U.S. administration.

The IHSG opened higher, gaining 39.71 points or 0.44 percent to reach 9,072.29. The LQ45 index, which tracks 45 leading stocks, also rose 3.84 points or 0.44 percent to 885.92.

This domestic rally stood in sharp contrast to declines across Wall Street and regional Asian markets. Analysts argued that the Indonesian market is undergoing a structural transformation rather than a short-term rebound.

“This rally in the JCI is not merely a technical rebound, but a shift in the investment regime toward a supercycle phase that could sustain the Indonesian stock market throughout 2026,” the Research Team at Lotus Andalan Sekuritas said in a report quoted by Antara.

The bullish sentiment is reinforced by a significant rotation of capital from government bonds (SBN) into equities. Despite rising bond yields, the index continues to climb, signaling the early stages of a commodity-driven bull market. Investors are betting on Indonesia’s abundant natural resources amid tightening global supply conditions.

While domestic confidence remains strong, global markets are unsettled by political interference in U.S. monetary policy. President Donald Trump has called for reforms to credit card interest rates and publicly criticized Federal Reserve Chair Jerome Powell, raising concerns that the central bank’s independence is under threat.

These pressures are compounded by recent Producer Price Index (PPI) data showing persistent inflationary risks, which may prompt the Fed to adopt a hawkish stance, holding or even raising rates despite slowing economic growth, a scenario that typically dampens investor appetite for equities.

Geopolitical tensions have added further uncertainty. Rising friction between the U.S. and Iran, coupled with diplomatic disputes over Greenland, has prompted investors to reduce risk exposure even as U.S. economic data remains relatively solid.

The combination of political pressure on the Fed and heightened geopolitical risks pushed international markets into negative territory on Wednesday.

In Europe, the Euro Stoxx 50 fell 0.36 percent, and Germany’s DAX dropped 0.53 percent, while Britain’s FTSE 100 managed a 0.46 percent gain. France’s CAC slipped 0.19 percent.

On Wall Street, the Dow Jones Industrial Average edged down 0.09 percent to close at 49,149.75, the S&P 500 fell 0.53 percent to 6,926.99, and the Nasdaq Composite led losses with a 1.07 percent decline to 25,465.94.

The downward trend extended into Asia on Thursday morning, with Japan’s Nikkei dropping 0.80 percent, Shanghai’s Composite slipping 0.16 percent, and Singapore’s Straits Times Index falling 0.34 percent. Hong Kong’s Hang Seng, however, bucked the trend, rising 0.38 percent. ***