Indonesian Stocks Rise, Energy Sector Leads Gains Amid Geopolitical Cautions

Indonesia's Composite Stock Price Index (IHSG) experienced a positive close on Tuesday, driven primarily by a strong performance in the energy sector. The benchmark index finished the trading day up by 68.04 points, reaching 6,195.42, while the LQ45 index, which tracks the performance of 45 leading stocks, also saw a gain of 8.10 points, settling at 619.27.

Market sentiment was influenced by a mix of global and domestic factors. Investors remained cautious amid ongoing geopolitical uncertainties, particularly concerning negotiations between the United States and Iran, which have caused volatility in crude oil markets. Reports of Tehran suspending talks with Washington, in response to Israeli actions in Lebanon, added to the tension, although U.S. President Donald Trump indicated that negotiations were still ongoing. Conflicting statements from Trump and Israeli Prime Minister Benjamin Netanyahu regarding recent discussions on the Lebanon conflict also captured market attention.

Domestically, economic data provided a more stable outlook. The Purchasing Managers' Index (PMI) rose to 50.0 in May 2026 from 49.1 in April, signaling a robust domestic sector despite global pressures on export volumes. The Central Statistics Agency (BPS) reported that inflation for May 2026 was 0.28 percent month-on-month and 3.08 percent year-on-year, remaining within Bank Indonesia's target range. Furthermore, Indonesia's trade balance recorded a surplus of $90 million, with exports valued at $25.30 billion and imports at $25.31 billion.

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IHSG strengthened, market participants also digested economic data.