TEMPO.CO, Jakarta - The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed higher at the end of trading on Wednesday, July 16, 2025, following Bank Indonesia’s (BI) decision to lower its benchmark interest rate (BI Rate) to 5.25 percent.
The IHSG ended the day at 7,192.02, gaining 51.55 points or 0.72 percent. In contrast, the LQ45 index edged down by 0.14 points or 0.02 percent to 779.30.
According to the Phintraco Sekuritas Research Team, BI’s rate cut was the main factor behind the IHSG’s rally. In their analysis on Wednesday, the team noted that the move boosted investor optimism and aligned with the ongoing global trend of monetary easing.
The index’s gain was further supported by positive sentiment from the trade agreement reached between Indonesian President Prabowo Subianto and U.S. President Donald Trump, which included a reduction in tariffs from 32 percent to 19 percent.
"Both of these sentiments were factors driving the index's strengthening on Wednesday (16/7)," said the Phintraco Sekuritas Research Team.
If the IHSG manages to stay above the support level of 7,130, there is still potential for it to test resistance in the range of 7,200 to 7,250. However, investors are advised to be cautious of potential profit-taking if the index fails to break through the 7,200 psychological level, as the Stochastic RSI indicator has entered the overbought zone.
On the stock side, several issuers saw price increases that contributed to the IHSG’s upward movement.
Trading data shows 365 stocks closed higher, 268 declined, and 335 remained unchanged. Total transaction value reached IDR 16.51 trillion, with a trading volume of 28.94 billion shares.
Across Asia, market movements were mixed. Singapore’s Straits Times Index rose by 0.3 percent to 4,132.25, while Hong Kong’s Hang Seng slipped by 0.29 percent to 24,517.75.
Japan’s Nikkei 225 edged down 0.04 percent to 39,663.39, and China’s Shanghai Composite dipped 0.03 percent to 3,503.78.
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