IHSG Jumps to 6,118 as US-Iran Peace Agreement Sparks Global Rally

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) soared during Monday's opening session, tracking a massive global market rally triggered by a landmark peace agreement between the United States and Iran. The IHSG opened with a sharp gain of 111.07 points, or 1.85 percent, reaching the 6,118.73 level.

Simultaneously, the LQ45 index of blue-chip stocks climbed 13.38 points, or 2.24 percent, to settle at 601.83. Market analysts have expressed a highly optimistic outlook following the geopolitical breakthrough.

"Kiwoom Research is quite optimistic in recommending a gradual average up strategy," said Head of Research at Kiwoom Sekuritas, Liza Camelia Suryanata, as quoted by Antara, on Moday, June 15, 2026.

Global investor sentiment shifted dramatically over the weekend following US President Donald Trump's announcement that a peace deal with Iran had been finalized. The formal signing is scheduled for June 19, 2026, in Switzerland. Iranian Deputy Foreign Minister Kazem Gharibabadi confirmed the finalization of the Memorandum of Understanding (MoU).

The sweeping agreement includes the reopening of the Strait of Hormuz, the lifting of the US naval blockade against Iran, and the release of 25 billion dollars in frozen Iranian assets. It also incorporates an Iranian commitment to halt nuclear weapons development during final negotiations.

While Iran maintained that the management of the Strait of Hormuz remains under the joint jurisdiction of Iran and Oman, the reduction in conflict risk has immediately lowered concerns regarding global energy supply chains.

"The improving geopolitical situation reduces concerns about global energy supply disruptions and immediately increases investor risk appetite," Liza added.

Despite the market optimism, the World Bank has released a cautious forecast for Indonesia’s fiscal health. The bank expects the state budget (APBN) deficit to remain high at 2.8 percent of GDP through 2027 due to energy subsidies, government priority programs, and rising debt interest burdens that are projected to increase from 18.7 percent to 19.2 percent of state revenue by 2028.

On the bilateral front, Bank Indonesia (BI) and the People’s Bank of China (PBOC) have deepened financial ties. This cooperation includes the expansion of local currency transactions, the launch of cross-border QR payments, and the integration of Bank Mandiri into China’s CIPS cross-border payment system.

Additionally, Danantara, through PT Danantara Investment Management (DIM), issued its inaugural global bonds worth 1.5 billion dollars with yields of 5.35 percent for the 5-year tenor and 5.95 percent for the 10-year tenor. This issuance occurred amid investor focus on Indonesia's fiscal risks, rupiah stability, and Danantara's expanding mandate as a sole exporter of strategic commodities starting this September.

The IHSG's gain mirrors a widespread positive trend across international markets following Friday's close. In European markets, the Euro Stoxx 50 rose 2.16 percent, the British FTSE 100 increased 1.63 percent, the German DAX climbed 1.76 percent, and the French CAC 40 closed up 1.83 percent. Wall Street also saw gains, with the Dow Jones Industrial Average rising 0.17 percent, the S&P 500 increasing 0.50 percent, and the Nasdaq Composite moving up 0.31 percent.

In regional Asian trading on Monday morning, the Nikkei plummeted upward by 5.44 percent to 69,680.00, while the Shanghai Composite gained 0.94 percent to 4,096.31. Concurrently, the Hang Seng index rose 0.43 percent to 24,828.00 and the Strait Times Index pushed ahead by 1.14 percent to 5,083.78. The Indonesian rupiah also strengthened in tandem with the market rally, reaching a position of IDR 17,778 per US dollar on Monday morning. ***