Interest Rate Cuts Boost Indonesian Stock Market (Wednesday, May 21, 2025)

The Jakarta Composite Index (IHSG) rose 0.68% to close at 7,142.46 on Wednesday (21/5/2025).

The strengthening occurred after Bank Indonesia (BI) announced a cut in its benchmark interest rate.

"BI has decided to lower the BI *Rate* by 25 bps to 5.5%, as well as the *deposit facility* rate to 4.75% and the *lending facility* rate to 6.25%," said BI Governor Perry Warjiyo, as reported by *Katadata.co.id*, Wednesday (21/5/2025).

He stated that this decision was made to keep inflation in 2025 and 2026 within the target of 2.5% plus-minus 1%. In addition, BI is also striving to maintain the stability of the rupiah exchange rate amid global uncertainty.

Based on the IDX-IC Sectoral Index, eight stock sectors strengthened today. The basic materials sector led with a 2.29% increase, followed by the health and property sectors, which rose 1.50% and 1.33%, respectively.

Meanwhile, three other stock sectors experienced corrections. The technology sector fell the most, by 2.35%, followed by the industrial and energy sectors, which fell 0.45% and 0.01%, respectively.

According to RTI Business data, the frequency of domestic stock trading today reached 1.38 million transactions.

A total of 26.64 billion shares changed hands, with a total transaction value of Rp 15.48 trillion.

349 stocks closed higher today, 270 stocks weakened, and 190 stocks were stagnant.

Today's *top gainer* was MSIN, which soared 23.76%, followed by BCIP and INCO, which rose 16.36% and 12.63%, respectively.

On the other hand, the stock with the code PICO became the *top loser* after plunging 10.20%, followed by HAJJ and NINE, which corrected 8.45% and 8.33%, respectively.

In line with the IHSG, the majority of Asian markets closed in the green this afternoon. The Hang Seng Index rose 0.62% to 23,827.78; the Shanghai Index rose 0.21% to 3,387.57; the Strait Times Index rose 0.050% to 3,882.55; while the Nikkei Index fell 0.61% to 37,299.