IDX Stable as Investors Await BI Policy and Leadership Transition

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) showed signs of stability on Tuesday, January 20, 2026, as investors adopted a cautious “wait-and-see” stance ahead of the Bank Indonesia (BI) Board of Governors Meeting (RDG).

Despite uncertainty surrounding interest rate decisions and a leadership transition within the central bank, analysts believe the market has already priced in these developments.

Market sentiment suggests that BI is likely to keep its benchmark interest rate unchanged. The projection comes as the Rupiah has faced downward pressure in recent weeks, prompting BI to prioritize currency stability over aggressive easing.

Maximilianus Nicodemus, Associate Director at Pilarmas Investindo Sekuritas, said the market’s familiarity with BI’s policy approach has prevented panic. “So far, if we look at the results of the BI RDG, we think everything is clear. We believe BI will definitely maintain its interest rate,” Nico said, as quoted by Antara.

He noted that the market had already anticipated this outcome, keeping the Jakarta Composite Index (IHSG) stable at 9,149.45, up 0.17 percent by late afternoon.

Attention has also turned to the upcoming fit-and-proper test for BI’s new Deputy Governor. The process follows the resignation of Juda Agung on January 13, 2026.

President Prabowo Subianto has submitted three nominees to the House of Representatives (DPR): Thomas Djiwandono, Dicky Kartikoyono, and Solihin M Juhro.

Analysts believe that whichever candidate is selected, policy continuity will be maintained, with BI expected to continue its “pre-emptive and looking forward” approach to monetary stability throughout 2026.

Nico expressed confidence that the transition will not trigger significant volatility. He emphasized BI’s selective internal process in appointing leaders, noting that the central bank applies rigorous filtering to ensure candidates possess the necessary competencies. “We believe it won’t be that easy to influence monetary policymaking,” he added.

The underlying strength of Indonesia’s domestic economy remains a key anchor for the stock market. With 2026 viewed as a year of continued recovery, high investor expectations regarding Indonesia’s resilience have helped buffer the IHSG against global shocks.

Nico highlighted that strong fundamentals and optimism about economic recovery are keeping the market stable. ***