The Jakarta Composite Index (JCI), Indonesia’s primary stock market benchmark, experienced a rise of 0.34% in the week ending July 24. This increase was attributed to stronger trading activity, which managed to counterbalance ongoing foreign investor outflows and the growing uncertainty surrounding the global economy.
During this period, the market capitalization of the Indonesia Stock Exchange climbed to Rp 10,870 trillion. Concurrently, the average daily trading turnover saw a significant increase, jumping 41% to reach Rp 19.76 trillion. Despite these positive indicators, foreign investors continued to be net sellers, with cumulative outflows amounting to Rp 79.09 trillion for the year. This trend reflects a cautious approach towards Indonesian assets amidst the prevailing economic conditions.
Market sentiment was further impacted by external factors, including the rising global oil prices driven by escalating tensions in the Middle East. Additionally, the imposition of new US tariffs on imports from several countries, which included a 10% tariff on specific Indonesian goods, contributed to the cautious mood among investors.
Despite these challenges, Indonesia’s Finance Ministry has reassured that the country’s fiscal position remains stable. While acknowledging that elevated oil prices could exert additional pressure on the state’s budget for 2026, the ministry expressed confidence in its ability to manage the country’s overall financial health effectively.