During the week ending July 24, Indonesia’s benchmark Jakarta Composite Index (JCI) experienced a 0.34% increase, buoyed by heightened trading activity. This positive movement occurred despite the challenges posed by ongoing foreign investor withdrawals and a backdrop of growing global economic uncertainty.
The market capitalization of the Indonesia Stock Exchange climbed to Rp 10,870 trillion, while the average daily trading turnover witnessed a significant 41% jump to Rp 19.76 trillion. Nevertheless, foreign investors continued to be net sellers, contributing to cumulative outflows that have reached Rp 79.09 trillion this year. This trend indicates continued cautiousness regarding Indonesian assets among international investors.
Market sentiment was negatively impacted by the rise in global oil prices, a consequence of increased tensions in the Middle East. Additionally, new tariffs imposed by the United States on imports from several trading partners added to the strain. Notably, a 10% tariff was placed on certain goods imported from Indonesia, further influencing market dynamics.
The Indonesian Finance Ministry has acknowledged the potential for higher oil prices to exert pressure on the state budget for 2026. Despite these concerns, officials maintain that the country’s overall fiscal position remains stable, underscoring their confidence in managing these economic challenges.