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 ongoing foreign investor sell-offs and the uncertainty present in the global economic landscape.
The market capitalization of the Indonesia Stock Exchange reached Rp 10,870 trillion, while the average daily trading turnover saw a significant surge of 41%, reaching Rp 19.76 trillion. Nevertheless, foreign investors continued to be net sellers, with the total outflows amounting to Rp 79.09 trillion for the year thus far, indicating a cautious approach towards Indonesian assets.
Market dynamics were influenced by a rise in global oil prices, largely due to escalating tensions in the Middle East. Additionally, the introduction of new US tariffs on imports from several countries, including a 10% tariff on specific Indonesian goods, added to the pressure on the market sentiment.
Amid these challenges, Indonesia’s Finance Ministry has recognized the potential impact of elevated oil prices on the state budget for 2026. However, officials maintain that the country’s overall fiscal position remains stable, suggesting resilience in the face of these economic pressures.