REPUBLIKA.CO.ID, JAKARTA -- The Indonesian stock market closed lower in the earlier this week, Monday (19/4). The Composite Stock Price Index (IHSG) corrected by 33 points or 0.55 percent to 6,052.

The consumption, finance, plantation, mining, infrastructure,  trade and basic industry sectors dominated the IHSG movement so that they were the largest contributors to the decline of IHSG. Meanwhile, foreign investors posted net sales of Rp 34 billion.

Director of the Research and Investment Association of Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, said market players appeared to be more cautious ahead of the decision from Bank Indonesia (BI) on the benchmark interest rate on Tuesday (20/2).

Bank Indonesia is expected to maintain its benchmark interest rate at the Board of Governors Meeting for April 2021. One of the factors that will be taken into account by BI is the stability of the rupiah exchange rate.

"After maintaining interest rates last month, we see that BI is quite comfortable in maintaining the difference in interest rates amidst the economic recovery in the United States," said Nico, Monday (19/4).

The central bank also believes that there is still room for banks to lower interest rates. Nico stated that BI will continue to maintain interest rates throughout 2021.

From Asian stock markets, investors responded to the release of economic data in Japan. The significant increase in Japanese exports and imports also provides a good indication for economic recovery, especially in Asia.

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