During the week ending July 24, Indonesia’s stock market witnessed a positive trend as the Jakarta Composite Index (JCI) increased by 0.34%. This rise was fueled by a boost in trading activity, despite ongoing concerns over foreign investors pulling out and uncertainties looming over the global economy.
The Indonesia Stock Exchange reported an increase in market capitalization, which reached Rp 10,870 trillion. Furthermore, the average daily trading turnover experienced significant growth, jumping 41% to Rp 19.76 trillion. However, the enthusiasm was tempered by the fact that foreign investors continued to sell off their Indonesian holdings, with net outflows amounting to Rp 79.09 trillion for the year so far. This trend highlights a cautious approach towards investing in Indonesian assets amid current global conditions.
Contributing to the cautious market sentiment were the rising global oil prices, a consequence of heightened geopolitical tensions in the Middle East. Additionally, the United States imposed new tariffs on imports from several trading partners, including a 10% tariff specifically on certain Indonesian goods, further affecting market dynamics.
In response to these developments, Indonesia’s Finance Ministry acknowledged the potential implications of higher oil prices, which could exert additional pressure on the 2026 state budget. Despite these challenges, the ministry maintained that the country’s overall fiscal situation remains stable, suggesting resilience in the face of external economic pressures.