Indonesia's Stock Index Closes Higher at 8,025 After BI Rate Cut

September 17, 2025 | 07:09 pm

TEMPO.CO, Jakarta - The Indonesia Composite Index (IHSG) on the Indonesia Stock Exchange (IDX) closed higher on Wednesday afternoon, September 17, 2025, breaking through the 8,025.18 following the dovish monetary policy of Bank Indonesia (BI).

The IHSG closed up 67.48 points, or 0.85 percent, at 8,025.18. The 45 leading stocks, or the LQ45 index, rose 8.28 points, or 1.03 percent, to 815.22.

"The impact seems very positive; it has now surpassed 8,000; the market responded positively to the pro-growth policies currently being conducted by the Government and BI," said the Head of Research & Chief Economist at Mirae Asset Sekuritas, Rully Arya Wisnubroto, when contacted in Jakarta on Wednesday.

The BI Board of Governors' Meeting in September 2025 decided to cut the benchmark interest rate (BI Rate) by 25 basis points (bps), bringing it to 4.75 percent.

The deposit facility interest rate has also been reduced by 50 bps to 3.75 percent, while the lending facility interest rate has been cut by 25 bps to 5.5 percent.

"In the future, BI will continue to monitor the prospects for economic growth and inflation in utilizing the space for lowering the BI Rate interest rate, taking into account the stability of the exchange rate," said BI Governor Perry Warjiyo.

From abroad, market players are increasingly optimistic that the U.S. Federal Reserve will cut its benchmark interest rate. Based on CME Fedwatch, the probability of a 25 bps cut is 95 percent.

Meanwhile, market players in Spain are monitoring the trade negotiations between the U.S. and China, where an agreement has been reached on the framework for transferring ownership of TikTok to U.S. control.

U.S. President Donald Trump announced an agreement between the United States and China that would allow TikTok to continue operating in the United States. As part of the agreement, TikTok's U.S. assets must be transferred from ByteDance to a U.S. owner. U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to speak on Friday (9/19) to finalize the requirements.

The IHSG opened higher and remained in the green zone until the close of the stock market. According to the IDX-IC Sectoral Index, ten sectors increased, with the industry sector leading the way at 2.90 percent. The technology and health sectors followed with increases of 2.46 and 0.86 percent, respectively.

Meanwhile, one sector corrected, namely the raw material sector, which weakened by 0.14 percent.

The frequency of stock trading recorded 2,158,573 transactions with a total of 44.23 billion shares traded worth Rp18.25 trillion. A total of 360 shares rose, 318 shares fell, and 124 remained unchanged in value.

In the afternoon, regional stock markets in Asia saw the Nikkei index fall 78.27 points, or 0.17 percent, to 44,824.00; the Hang Seng index rise 469.88 points, or 1.78 percent, to 26,908.39; the Shanghai index rise 14.48 points, or 0.37 percent, to 3,876.34; and the Straits Times index fall 15.53 points, or 0.36 percent, to 4,322.21.

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