US-Iran Peace Deal Boosts Indonesian Stocks

Indonesia's Composite Stock Price Index (IHSG) began the trading week with a significant gain, buoyed by positive global market sentiment. This optimism is largely attributed to a peace agreement reached between the United States and Iran, which has spurred increased investor interest in riskier assets.

The IHSG opened up 111.07 points, or 1.85 percent, reaching 6,118.73. The LQ45 index, comprising top-tier stocks, also saw a substantial rise of 13.38 points, or 2.24 percent, to 601.83. Analysts at Kiwoom Sekuritas Indonesia expressed optimism, recommending a gradual 'average up' strategy for investors.

Global attention over the weekend was focused on the geopolitical developments in the Middle East. U.S. President Donald Trump announced the finalization of a peace deal with Iran, scheduled for official signing in Switzerland on June 19, 2026. Iran's Deputy Foreign Minister, Kazem Gharibabadi, confirmed the finalization of a Memorandum of Understanding (MoU).

The agreement encompasses several key points: the reopening of the Strait of Hormuz, the lifting of the U.S. naval blockade on Iran, the release of $25 billion in previously frozen Iranian assets, and Iran's commitment not to develop nuclear weapons during ongoing negotiations. However, Iran insists that management of the Strait of Hormuz remains under the authority of Iran and Oman, including the potential imposition of navigation and security service fees.

Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas Indonesia, stated that these developments alleviate market concerns about potential disruptions to global energy supplies, a major source of economic uncertainty. The improved geopolitical situation has directly enhanced investor risk appetite. Beyond geopolitics, investors are also monitoring the U.S. Federal Reserve's upcoming meeting and domestic projections for Indonesia's budget deficit.