Indonesia’s Jakarta Composite Index (JCI) experienced a modest increase of 0.34% in the week ending July 24, buoyed by heightened trading activity despite a backdrop of continued foreign investor withdrawals and global economic concerns. The market capitalization of the Indonesia Stock Exchange rose to Rp 10,870 trillion, with the average daily trading turnover climbing 41% to Rp 19.76 trillion.
Despite these positive market movements, foreign investors have maintained a cautious stance, remaining net sellers and contributing to cumulative outflows totaling Rp 79.09 trillion for the year. This reflects a broader apprehension toward Indonesian assets amidst a climate of uncertainty.
Market sentiment has been further dampened by the escalation of global oil prices, driven in part by increased tensions in the Middle East. Additionally, the imposition of new tariffs by the United States, including a 10% levy on certain goods imported from Indonesia, has added to the challenges faced by the market.
In response to these developments, Indonesia’s Finance Ministry has acknowledged the potential for higher oil prices to exert pressure on the state budget for 2026. Nonetheless, officials have reassured that the country’s fiscal position remains stable overall, suggesting resilience in the face of these external economic pressures.