IHSG Expected to Strengthen This Week Despite U.S. Government Shutdown

1 week ago 9

October 6, 2025 | 10:32 am

TEMPO.CO, Jakarta - An analyst from PT Indo Premier Sekuritas (IPOT) predicts that Indonesia’s benchmark Composite Stock Price Index (IHSG) could strengthen toward the 8,168 resistance level this week, driven by global and domestic economic factors including the ongoing U.S. government shutdown, signals of monetary policy easing, and upcoming foreign exchange reserve data.

Equity Analyst Imam Gunadi from Indo Premier Sekuritas said the global financial market remains overshadowed by fiscal uncertainty in the United States, which has yet to fully subside following the threat of a government shutdown over the past weekend.

“The global financial market is still overshadowed by fiscal uncertainty in the United States, which has not completely subsided after the government shutdown threat last weekend,” Imam said in an official statement on Monday, October 6, 2025.

The U.S. government has entered its fifth day of partial shutdown after Congress failed to pass a federal budget before the start of the new fiscal year, forcing several public services to halt temporarily.

In the midst of this situation, Imam said, market participants are closely monitoring several key events from the U.S. Federal Reserve (The Fed) — including speeches by officials Raphael Bostic and Michelle Bowman, as well as the release of the FOMC Minutes scheduled for October 8.

Investors are also awaiting the Initial Jobless Claims data on October 9, which could offer new clues on the Fed’s next moves regarding interest rate direction and potential monetary easing, particularly amid signs of a slowing U.S. economy.

Beyond the U.S., Imam highlighted that developments in China also warrant attention, particularly regarding the government’s expected fiscal stimulus aimed at boosting domestic consumption. Such measures, he noted, could indirectly support the prices of Indonesia’s key export commodities.

Domestically, several economic indicators are expected to influence market sentiment this week. Bank Indonesia will release foreign exchange reserve data on October 7 to gauge external resilience, followed by retail sales figures on October 9 and motorcycle and car sales data between October 9–10.

“These data points are crucial as they provide insight into household consumption strength and middle-class purchasing power, key drivers of Indonesia’s economic growth toward the end of the year,” Imam added.

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