Indonesia's IHSG Strengthens as US Inflation Eases, Fed Rate Hike Expectations Subside

The Indonesian Stock Exchange (BEI) Composite Stock Price Index (IHSG) closed higher on Wednesday, July 15, 2026, as falling US inflation data eased market expectations for an aggressive monetary tightening by the Federal Reserve.

The IHSG gained 2.45 points, or 0.04 percent, to settle at 6,041.97. The LQ45 index, which comprises 45 leading stocks, also saw a modest increase of 1.01 points, or 0.17 percent, reaching 599.90.

"The IHSG and Asian regional markets moved higher, with the release of US inflation data dampening expectations of a benchmark interest rate hike by the Fed," stated Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas.

Globally, the lower-than-expected US annual inflation rate of 3.5 percent in June, down from 4.2 percent in May and below the 3.8 percent forecast, contributed to the market's positive sentiment. Federal Reserve Chairman Kevin Warsh reiterated the central bank's commitment to price stability but offered no signals of more aggressive policy shifts. Despite this, markets continue to price in a roughly 50 percent chance of a Fed rate hike in September 2026, partly due to renewed US-Iran tensions impacting oil prices and keeping inflation in focus.

Domestically, the Indonesian government has affirmed its stance against raising tax rates as a measure to boost state revenue.

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IHSG and Asian regional markets moved higher, with the release of US inflation data dampening expectations of a benchmark interest rate hike by the Fed.