January 21, 2026 | 11:20 pm
TEMPO.CO, Jakarta - In the first trading session today, Wednesday, January 21, 2026, the Indonesia Composite Index (IHSG) closed lower at 9,021.49. It plunged 113.21 points, or 1.24 percent, from the previous day's close of 9,134.70.
The IHSG opened this morning at 9,094.3. It then strengthened to a high of 9,105.23. The IHSG's lowest point was 8,999.89. The LQ45 Index fell 1.17 percent to 873.99.
Indo Premier Sekuritas (IPOT) recorded 152 rising issuers, 601 weakening issuers, and 205 stable issuers. Meanwhile, the transaction frequency reached 2.51 million, valued at Rp20.78 trillion.
"All sectors weakened except for the raw materials sector, which strengthened by 0.39 percent to reach 2,398," IPOT wrote in a statement on Wednesday, January 21, 2026. The industrial sector suffered the most with a loss of 6.77 percent.
The IHSG continued its decline from this morning, plummeting further this afternoon. Wednesday morning's IHSG decline was in line with a stable domestic economy and increasing global risks.
The IHSG opened down 40.27 points, or 0.44 percent, at 9,094.43. The 45-stock blue-chip index (LQ45) fell 8.44 points (0.95 percent) to 875.94.
The Lotus Andalan Sekuritas Research Team stated in its study that the index's weakening was due to a combination of relatively stable domestic sentiment and rising external risks, such as Trump's tariff threats against European countries. Furthermore, Antara quoted the team as saying, "Pressure in the global bond market and volatility in the U.S. stock market have the potential to cause volatility in the Indonesian market today. Foreign capital flows and the market's response to Bank Indonesia's decision are key to determining its direction."
Domestically, market participants are closely monitoring the results of the Bank Indonesia (BI) Board of Governors' meeting, announced today, which will determine the BI rate amid the rupiah's historic low.
There is a strong consensus that BI will maintain the interest rate at 4.75 percent to stabilize the exchange rate and maintain the attractiveness of rupiah assets.
On Tuesday, January 20, U.S. and European stock markets fell in unison, triggered by U.S. President Donald Trump's escalating rhetoric regarding Greenland. This rhetoric included threats of gradually imposing tariffs ranging from 10 to 25 percent on eight NATO countries, levying a 200 percent tariff on French wine, and criticizing the UK. These actions triggered a surge in volatility. The U.S. stock market decline was also triggered by a weakening U.S. dollar index and selling pressure on U.S. assets.
Market concerns were further exacerbated by signals of outflows from U.S. bonds, including a Danish pension fund's decision to sell U.S. Treasuries, and the increasing risk of a capital war, as highlighted by Ray Dalio.
Market participants view tariffs as a short-term, non-economic instrument that creates uncertainty. Meanwhile, Europe is considering retaliatory measures, which would further stifle global sentiment ahead of Trump's meeting with European leaders in Davos, Switzerland.
Additionally, market participants are shifting funds to safe-haven assets, such as gold, which recently hit a record high. Pressure is also mounting from the global bond market, particularly in Japan, where a surge in long-term bond yields is prompting investors to exercise caution.
Meanwhile, U.S. employment data revealed a slowdown in hiring, which added to market caution about the outlook for global economic growth.
Imam Gunadi, an equity analyst at Indo Premier Sekuritas, predicts that the IHSG will likely enter a consolidation phase this week, with support at 9,000 and resistance at 9,200. Domestically, investors are focused on Bank Indonesia's interest rate decision this week.
"The market expects BI to hold interest rates at 4.75 percent, with a primary focus on maintaining exchange rate stability amid external pressures," said Imam Gunadi, on Sunday, January 18, 2026. Investors will also pay attention to China's release of its fourth-quarter 2025 economic growth figures, as well as its retail sales and unemployment rates.
Ilona Estherina contributed to this article
Read: Bank Indonesia Chief Explains Factors Behind Rupiah's Weakening
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