The Indonesian capital market is being enlivened by a wave of capital increase actions through pre-emptive rights or rights issues throughout July 2026. However, this strategic move by issuers faces a rather pressing economic reality, namely the upward trend in interest rates and market dynamics that remain volatile.
This condition is further compounded by a 100 basis point (bps) increase in the BI rate over the past three months. This hike directly boosts funding costs or cost of fund for companies seeking to strengthen their capital structure through the capital market.
On the other hand, investor optimism appears to remain restrained given the performance of the Composite Stock Price Index (IHSG). A slight gain of 0.83% over the past week indicates that market sentiment has not fully recovered, requiring issuers to devise more careful strategies to entice shareholders to exercise their rights.
