The Jakarta Composite Index (IHSG) showed a lackluster performance in this week's trading. So, what’s the outlook for next week? According to data from the Indonesia Stock Exchange (IDX), the IHSG declined by 0.87% over the past week and closed at 7,113.42 on Thursday (June 5, 2025). However, on a year-to-date (ytd) basis—since the beginning of 2025—the index has still recorded a 0.47% increase.

The total market capitalization of the Exchange also dropped by 0.32% for the week, down to Rp12,381 trillion from Rp12,420 trillion the week before. Meanwhile, over the last trading week (from June 2 to June 5, 2025), Indonesia's stock market registered a foreign net sell worth Rp4.7 trillion. Since the start of 2025, cumulative foreign net selling has reached Rp49.88 trillion.

Nafan Aji Gusta, Senior Market Chartist at Mirae Asset Sekuritas, stated that IHSG movement in the upcoming week will be shaped by several key factors. One major influence will be the continuation of trade talks between the United States and China regarding import tariffs, which are set to take place in London. “If the talks result in a comprehensive agreement, it will serve as a boost to the market,” Nafan told Bisnis on Sunday (June 8, 2025).

Domestically, IHSG is expected to respond to macroeconomic indicators, particularly the consumer spending index. Additionally, Nafan mentioned that foreign capital flows may shift toward equity sectors that show relatively strong growth potential, although market participants are currently adopting a cautious stance.

Phintraco Sekuritas analyst Ratna Lim observed that this week’s decline in the IHSG was driven by short-term profit-taking activities, especially in the context of the long weekend holiday. “The market is also waiting for the outcome of the U.S.-China trade negotiations, particularly as the 90-day grace period for reciprocal tariffs draws to a close,” Ratna wrote in her research note.

Moreover, investors are closely monitoring the implementation of the Rp81.4 billion investment by state-owned superholding company Danantara. This investment is expected to be sourced from the projected Rp120 billion in dividends from state-owned enterprises (SOEs) this year and will be distributed across eight targeted economic sectors.