IHSG Opens Lower as Investors Await Fed Decision, BI Transition

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) Composite Index (IHSG) opened slightly lower on Tuesday morning, January 27, 2026, as investors adopted a cautious stance ahead of key global and domestic policy announcements. 

Market participants are weighing the outcome of the US Federal Reserve’s first major policy meeting of the year while monitoring leadership changes at Bank Indonesia.

The IHSG slipped 0.75 points, or 0.01 percent, to 8,974.57 at the opening bell. The LQ45 index, which tracks 45 leading stocks, fell 1.70 points, or 0.19 percent, to 880.72. “Market attention is focused on the Fed’s meeting, which is expected to maintain its benchmark interest rate while signaling the possibility of two 25-basis-point cuts by the end of 2026,” the research team at Lotus Andalan Sekuritas said in a note on Tuesday, as reported by Antara.

The Federal Open Market Committee (FOMC) meeting, scheduled for January 27–28, is widely expected to hold rates steady. However, investors are looking for signals from Federal Reserve Chair Jerome Powell’s remarks on inflation, economic resilience, and the timing of future monetary easing. 

US housing data, particularly the FHFA House Price Index, is also under scrutiny as a potential indicator of inflationary pressure and its impact on the dollar and bond yields.

In Europe, markets are digesting the European Union’s decision to ratify a phased ban on Russian gas and LNG imports through 2027. Member states must submit diversification plans by March, a move that will introduce structural change to global energy markets and underscore Europe’s push for energy independence.

Domestically, attention is focused on Bank Indonesia following the appointment of Thomas Djiwandono as deputy governor, replacing Juda Agung. 

Investors are awaiting the Financial System Stability Committee (KSSK) press conference later today, which is expected to outline coordinated monetary and fiscal strategies for the new quarter.

Meanwhile, the US dollar index weakened to a four-month low, pressured by speculation over yen interventions and political uncertainty surrounding a potential US government shutdown. The decline has provided support for rupiah-denominated assets, bolstering sentiment in the domestic market.

Global equities showed mixed but generally positive performance. On Wall Street, major indices closed higher on Monday, with the S&P 500 rising 0.50 percent to 6,950.30. 

In Asia, regional markets opened mostly upbeat, with Hong Kong’s Hang Seng gaining 1.13 percent and Japan’s Nikkei advancing 0.18 percent. European bourses also finished largely in positive territory, including the DAX and FTSE 100, as investors adjusted to the implications of the newly ratified energy import regulations.

The marginal decline in the IHSG and LQ45 reflects a fundamentally stable market temporarily held back by anticipation of significant global and domestic policy signals. ***