Jakarta – The Indonesian stock market experienced a significant surge on Monday, February 23, 2026, with the Jakarta Composite Index (IHSG) jumping 1.15% in early trading. The IHSG opened at 8,366.56, a gain of 94.79 points, and while the increase moderated to around 0.9% by 9:20 AM local time, the positive momentum signaled a strong start to the week for Indonesian equities.
Trading volume was robust, with 381 stocks rising, 219 declining, and 358 remaining unchanged. A total of Rp 3.59 trillion (approximately $228 million USD) worth of shares were traded, involving 7.3 billion shares across 514,700 transactions. Market capitalization also surpassed Rp 15,000 trillion (approximately $956 billion USD), reflecting the overall positive sentiment.
Banking Sector Leads the Rally
According to Refinitiv data, all sectors were in positive territory during the morning session, with banking stocks playing a key role in driving the gains. Bank Mega (MEGA) saw a particularly impressive jump, soaring 25% to hit its auto reject atas (ARA) limit at 4,130. This performance contributed 6.32 index points to the IHSG’s overall increase. Bank Rakyat Indonesia (BBRI) and Bank Central Asia (BBCA) also provided significant upward pressure, adding 4.72 and 7.11 index points respectively.
Technical Analysis Points to Potential Consolidation or Further Gains
From a technical perspective, the IHSG’s movement is currently at a crossroads, facing resistance at the 20-day moving average. Analysts suggest that if the index fails to break through the 8,400 level, a period of consolidation may follow, with support anticipated around 7,800. However, a sustained rally that overcomes the 8,400 resistance could propel the IHSG towards the next resistance level at 8,700.
US Tariff Ruling and Exchange Reforms Fuel Optimism
Several positive factors are contributing to the market’s bullish sentiment. A key development is the recent ruling by the U.S. Supreme Court regarding tariffs implemented during the Donald Trump administration. The court deemed the tariffs unlawful, providing a degree of certainty and easing concerns about potential trade wars. While the possibility of new tariffs or trade policies between the U.S. And its partners remains, the decision has alleviated immediate pressure on global markets.
Adding to the positive outlook is progress in reforms at the Indonesia Stock Exchange (IDX). Jeffrey Hendrik, Acting Director General of the IDX, affirmed the exchange’s commitment to meeting all recommendations from global index providers as part of ongoing efforts to improve the Indonesian capital market. “We are prepared to meet all expectations from global index providers. We are aligned with MSCI’s requests and will deliver on our proposals according to schedule,” Hendrik stated during a press conference on February 20, 2026.
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What This Means for Investors
The IHSG’s strong performance reflects growing investor confidence in the Indonesian economy and the potential for further growth. The combination of a more stable global trade environment and ongoing reforms within the domestic market are creating a favorable environment for investment. The banking sector, in particular, appears to be leading the charge, with several major players demonstrating strong gains. Investors will be closely watching to see if the IHSG can sustain its momentum and break through the 8,400 resistance level in the coming days.
The IDX Composite is a stock index representing all stocks listed on the Indonesia Stock Exchange. You can find more information about the index and its performance on Google Finance and CNBC Indonesia.
The market will next be looking to the release of key economic data later this week, which will provide further insights into the health of the Indonesian economy and potentially influence future market movements.
Feel free to share your thoughts on the IHSG’s performance and the factors driving it in the comments below.
