RRI.CO.ID, Jakarta - The Indonesian stock market is expected to remain volatile during trading on Tuesday, July 28, 2026, as investors hold off on transactions while awaiting the US Federal Reserve’s (Fed) interest rate policy decision.

At the opening of trading on the Indonesia Stock Exchange (IDX), the Jakarta Composite Index (JCI) fell 10.58 points, or 0.17 percent, to 6,175.20. The LQ45 Index, which tracks blue-chip stocks, also weakened by 2.03 points, or 0.33 percent, to 610.53.

Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, said the JCI could test the support zone of 6,159–6,144, followed by 6,130 and 6,119, if selling pressure persists.

“Conversely, if it manages to rebound, the JCI needs to break back through the 6,219–6,219 range, followed by 6,315 as the next resistance level. A breakout above that level would open the door for further gains toward 6,394,” Liza said in her analysis, as quoted by Antara in Jakarta on Tuesday.

According to Liza, market participants are focusing on the outcome of the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday, local time. The consensus expects the Fed to keep interest rates steady amid easing inflation and falling crude oil prices.

“Investors will be closely watching Fed Chairman Kevin Warsh’s statement for clues regarding the outlook for monetary policy for the remainder of the year,” she said.

Liza noted that sentiment had been temporarily buoyed by falling oil prices and the start of the tech companies’ earnings season.

However, optimism waned following reports of mass production of DUV lithography machines in China and concerns over the scale of capital expenditures (capex) for artificial intelligence (AI) by major tech firms such as Alphabet and Tesla.

“The easing of the conflict has driven a sharp drop in oil prices and increased investor interest in risky assets. Nevertheless, the market is still monitoring developments in the Strait of Hormuz, as the risk of energy supply disruptions has not been fully eliminated,” Liza said.

Domestically, the market is also monitoring the leadership transition at Bank Indonesia (BI) following Perry Warjiyo’s resignation.

Destry Damayanti has been appointed Acting Governor of BI, while the House of Representatives (DPR RI) has affirmed that the selection process for a permanent governor will proceed objectively in line with the Law on BI.

“Market participants and economists view a transparent, merit-based selection process that upholds BI’s independence as a key factor in maintaining its credibility, stabilizing the rupiah exchange rate, controlling inflation, and sustaining investor confidence amid global economic uncertainty,” said Liza. ***