Indonesia’s stock market experienced a modest uptick over the week ending July 24, as the Jakarta Composite Index (JCI) climbed 0.34%. This growth was fueled by increased trading activity, even as the country faced foreign investor outflows and global economic uncertainties.
The Indonesia Stock Exchange saw its market capitalization rise to Rp 10,870 trillion, with average daily trading turnover jumping 41% to reach Rp 19.76 trillion. Despite these positive trends, foreign investors have been net sellers, with outflows totaling Rp 79.09 trillion this year. This indicates a persistent cautious approach toward Indonesian assets amid international market concerns.
Global factors also influenced market sentiment, notably the surge in oil prices due to escalating tensions in the Middle East. Additionally, new tariffs imposed by the US on imports from various trading partners, including a 10% tariff on certain Indonesian goods, added to the economic strain.
In light of rising oil prices, Indonesia’s Finance Ministry has recognized the potential impact on the 2026 state budget. However, they maintain that the country’s broader fiscal position remains stable despite these challenges.