In a week marked by heightened global economic uncertainties, Indonesia’s Jakarta Composite Index (JCI) recorded a rise of 0.34% by the close on July 24. This increase was driven by robust trading activities, which came despite a continued trend of foreign investor outflows. The Indonesia Stock Exchange saw its market capitalization climb to Rp 10,870 trillion, while the average daily trading turnover experienced a significant boost of 41%, reaching Rp 19.76 trillion.
Despite these positive movements in the local market, foreign investors have maintained a cautious stance towards Indonesian assets, as evidenced by a cumulative net selling of Rp 79.09 trillion so far this year. This trend highlights a lingering cautious sentiment amid global economic challenges.
Contributing to the cautious market sentiment were rising global oil prices, spurred by escalating tensions in the Middle East. Additionally, the introduction of new tariffs by the United States on imports from several trading partners, including a 10% tariff on certain Indonesian goods, added to the market’s apprehensions.
The Indonesian Finance Ministry has acknowledged that the increased oil prices could potentially exert additional pressure on the 2026 state budget. However, officials have also emphasized that the country’s fiscal position remains stable overall, suggesting resilience in the face of these external economic pressures.