The Jakarta Composite Index (JCI), Indonesia’s benchmark, experienced a modest increase of 0.34% in the week concluding on July 24, buoyed by stronger trading activity. This rise occurred despite ongoing foreign investor withdrawals and increasing global economic uncertainties. The market capitalization of the Indonesia Stock Exchange rose to Rp 10,870 trillion, and there was a significant 41% surge in average daily trading turnover, which reached Rp 19.76 trillion.
Notwithstanding these positive developments, foreign investors continued to be net sellers, with total outflows amounting to Rp 79.09 trillion for the year to date. This trend indicates a cautious stance towards Indonesian assets amid the prevailing uncertain global economic environment. Contributing to the cautious sentiment were rising global oil prices, exacerbated by escalating tensions in the Middle East, and the introduction of new U.S. tariffs on imports from several countries, including a 10% levy on specific Indonesian goods.
The Indonesian Finance Ministry has recognized that the increase in oil prices could pose challenges to the country’s fiscal plans, particularly the 2026 state budget. However, the ministry assured that Indonesia’s fiscal position remains stable overall. This statement comes at a time when the global economic landscape is characterized by volatility, with various geopolitical factors influencing market dynamics.
Despite the challenges, the positive movement in the JCI highlights a robust domestic market activity, which has managed to attract significant trading volumes. The resilience of Indonesia’s market amidst foreign investor outflows suggests underlying strength in the local economy and investor confidence in the country’s economic policies and growth prospects.