Indonesia’s IHSG Slips 2.3% Following Wall Street, Europe Sell-Off
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- IHSG opened 2.32% lower on Friday at 7,915.66, tracking weaker global and regional equities as investors watched the 8,000 support area.
- Indonesia’s Q4 2025 GDP growth came in at 5.39% year-on-year, beating expectations, but sentiment was pressured after Moody’s revised Indonesia’s outlook to negative while affirming the Baa2 rating.
- Investors are awaiting Indonesia’s January 2026 foreign exchange reserves data and the Q4 2025 property price index, as Asian markets traded mixed.
The Indonesia Stock Exchange’s benchmark Composite Stock Price Index (IHSG) opened lower on Friday morning, tracking declines across Asian and global equities.
The IHSG started the session down 188.20 points, or 2.32 percent, at 7,915.66. The LQ45 index of 45 blue-chip stocks fell 16.33 points, or 1.97 percent, to 813.02.
“The IHSG is expected to potentially test the 8,000 support level,” Phintraco Sekuritas head of research Ratna Lim said in a market note in Jakarta on Friday.
On the domestic front, Statistics Indonesia (BPS) reported that Indonesia’s gross domestic product (GDP) grew 5.39 percent year-on-year (yoy) in the fourth quarter of 2025, beating market expectations of 5.01 percent (yoy) and accelerating from 5.04 percent (yoy) growth in the third quarter of 2025.
For full-year 2025, the Indonesian economy expanded 5.11 percent (yoy), slightly below the government’s 5.2 percent (yoy) target.
“This is also the strongest annual growth since the third quarter of 2022, supported by stronger private-sector activity and rising investment,” Ratna said.
However, Moody’s Ratings on Thursday (Feb. 5, 2026), after the market close, revised Indonesia’s outlook to negative from stable, while affirming the country’s Baa2 rating.
Moody’s said the outlook change reflected a decline in policy predictability, which could weaken policy effectiveness and signal a deterioration in governance.
“This could become a negative sentiment in Friday’s trading,” Ratna said.
Market participants will also be watching for Indonesia’s January 2026 foreign exchange reserves data and the fourth-quarter 2025 property price index, both due on Friday.
In Thursday’s trading (Feb. 5, 2026), European stock markets closed broadly lower. The Euro Stoxx 50 fell 0.66 percent, Britain’s FTSE 100 slipped 0.99 percent, Germany’s DAX lost 0.46 percent, and France’s CAC 40 declined 0.29 percent.
US equities on Wall Street also ended in the red on Thursday (Feb. 5, 2026). The S&P 500 dropped 1.23 percent to 6,798.11, the Nasdaq slid 1.38 percent to 24,584.69, and the Dow Jones Industrial Average fell 1.20 percent to 48,908.30.
In Asian trading on Friday morning, Japan’s Nikkei rose 143.39 points, or 0.27 percent, to 53,961.39. China’s Shanghai index dipped 6.39 points, or 0.16 percent, to 4,069.52, Hong Kong’s Hang Seng plunged 408.26 points, or 1.52 percent, to 26,476.97, and Singapore’s Straits Times fell 31.47 points, or 0.63 percent, to 4,944.39.
Indonesianpost.com | Antara
