Jakarta Stocks Open Higher as Regional Markets Gain, Bond Yields Keep\nInvestors Cautious<\/p>\n
Jakarta. Jakarta stocks opened higher on Thursday, with the benchmark\nJakarta Composite Index (JCI) gaining 37 points, or 0.55%, to 6,632 as\nimproving sentiment across regional markets outweighed lingering\nconcerns over rising global bond yields.<\/p>\n
In early trading, the JCI moved between 6,614 and 6,638. More than 5\nbillion shares changed hands, generating Rp 1.96 trillion ($110.65\nmillion) in turnover across over 290,000 transactions. A total of 337\nstocks advanced, while 183 declined and 190 were unchanged.<\/p>\n
Phintraco Sekuritas said the recent rise in government bond yields in\nmajor economies, driven by expectations of higher interest rates amid\nthe risk of renewed inflation, could push global investors into risk-off\nmode.<\/p>\n
Investors may shift their funds toward assets perceived as safer,\nincluding US Treasuries, which offer attractive yields with relatively\nlower risk, potentially triggering capital outflows from emerging\nmarkets.<\/p>\n
\u201cThis could put pressure on the rupiah, push up Indonesian government\nbond yields, and increase companies\u2019 cost of capital. However, domestic\neconomic growth prospects, Bank Indonesia\u2019s policies, rising commodity\nprices, and corporate actions by listed companies are expected to help\noffset global pressures,\u201d Phintraco Sekuritas said.<\/p>\n
The brokerage also pointed to the government\u2019s agreement with the\nHouse of Representatives\u2019 Budget Committee on the 2027 macroeconomic\nassumptions. The 2027 state budget draft targets 6% economic growth,\n2.5% inflation, a rupiah exchange rate of Rp 17,500 per US dollar, and a\n6.9% yield on 10-year government bonds.<\/p>\n
Government spending is set to prioritize investment, infrastructure,\ndownstream industries, food, energy, education, and healthcare. Still,\nPhintraco Sekuritas said investors should closely monitor the\ngovernment\u2019s fiscal credibility in managing the budget deficit.<\/p>\n
Kiwoom Sekuritas Indonesia, meanwhile, highlighted Finance Minister\nPurbaya Yudhi Sadewa\u2019s optimism that bank credit growth could eventually\nexceed 20% as liquidity in the financial system improves.<\/p>\n
Base money, or M0, grew 18.3% year-on-year in July 2026, indicating\nrelatively strong liquidity conditions. The placement of government\nBudget Surplus (SAL) funds in the banking system has also provided\nadditional liquidity.<\/p>\n
With bank credit growth standing at just 13.58% as of July, Purbaya\nsees significant room for further acceleration if liquidity conditions\nremain supportive.<\/p>\n
\u201cThis condition could potentially drive private-sector growth and\nultimately support economic growth significantly above 6%, although its\nrealization will still depend on how effectively liquidity is\ntransmitted into credit, investment, and real-sector activity,\u201d Kiwoom\nsaid in its research released Thursday.<\/p>\n
Domestic factors are also shaping market dynamics, according to\nPluang Research, particularly developments in the coal sector.<\/p>\n
Indonesia\u2019s coal production and exports fell by around 8%\nyear-on-year in the first five months of 2026, partly due to delays in\napproving the Work Plan and Budget (RKAB) quotas, which limited supply\navailability in the spot market. Dry conditions have also added pressure\nto production supply chains.<\/p>\n
Despite strong earnings momentum, Pluang Research said several risks\nremain. Domestic market obligation (DMO) requirements continue to weigh\non average selling prices in the short term, as a larger share of DMO\nsales is typically priced below international market levels.<\/p>\n
Operating costs are also under pressure, with domestic high-speed\ndiesel prices rising by around 35%-40% quarter-on-quarter, potentially\noffsetting part of the benefits from improved revenue in the coming\nquarters.<\/p>\n
\u201cPolicy risks related to Danantara Sumberdaya Indonesia (DSI) and the\none-door export scheme, although expected to gradually ease, remain\nfactors to watch as implementation is still in a transition period\nthrough early 2027,\u201d Pluang Research said.<\/p>\n
Across Asia, markets mostly traded higher as of 9:16 a.m. Jakarta\ntime. Japan\u2019s Nikkei slipped 0.05%, while South Korea\u2019s Kospi gained\n0.81%. Hong Kong\u2019s Hang Seng rose 0.65%, and China\u2019s Shanghai Composite\nadded 0.45%.<\/p>\n
Wall Street ended higher on Wednesday as pressure in the bond market\nand surging oil prices began to ease. The S&P 500 gained 0.46%, the\nNasdaq Composite rose 0.45%, and the Dow Jones Industrial Average\nadvanced 0.56%.<\/p>\n
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