Indonesia’s composite stock index fell 9.93 points or 0.16 percent to open at 6,364.97 on September 24 in Jakarta as domestic markets absorbed Bank Indonesia’s policy pause and a sharp advance in US Treasury yields. Minutes after trading began, the IHSG deepened its slide to 0.47 percent, touching an early session low of 6343 against an early session high of 6363.
Central bank maintains interest rates
Bank Indonesia held its benchmark BI Rate unchanged at 5.75 percent following its Board of Governors meeting on September 22-23. The central bank also maintained the Deposit Facility rate at 4.75 percent and the Lending Facility rate at 6.50 percent, keeping policy settings steady for a third consecutive meeting.
“The Bank Indonesia Board of Governors meeting on September 22-23, 2026 decided to keep the BI Rate at 5.75%,” Governor of Bank Indonesia Destry Damayanti said. The outcome matched a CNBC Indonesia survey where eight of 11 surveyed institutions anticipated a rate hold, while three respondents projected a 25 basis point hike to 6.00 percent. The pause follows 100 basis points of cumulative rate increases during May and June, when Bank Indonesia lifted the benchmark from 4.75 percent to 5.25 percent on May 20, to 5.50 percent on June 9, and to 5.75 percent on June 18.
US bond yields pressure equities
Surging yields on US government debt placed immediate pressure on equity sentiment across the session. Strong US business activity data reported by S&P Global lifted US Treasury yields across multiple maturities to multi-year highs on September 23. The 10-year US Treasury yield surged 15 basis points to reach 5.11 percent after touching an intraday high of 5.14 percent.
Shorter and longer maturities recorded similar increases. The 2-year yield rose 16 basis points. It reached 4.9 percent. The 30-year US Treasury yield increased 11 basis points to 5.4 percent, while the 5-year yield exceeded 5 percent.
At the market opening, 232 shares advanced, 90 shares declined, and 312 shares remained unchanged. Initial transactions generated 161.71 billion rupiah in turnover across 27,965 trades, with trading volume reaching 302.59 million shares.
Related: Indonesian stocks drop 1.33% ahead of central bank rate decision · Indonesian stocks climb 0.64% ahead of central bank rate move
Source: Bank Indonesia
