JCI Climbs 1.1%, Outpaces Regional Peers Despite Middle East\nTensions<\/p>\n
Jakarta. Jakarta Composite Index (JCI) climbed more than 1% on\nThursday, outperforming most regional peers as investors shrugged off\ngeopolitical tensions and focused on Indonesia\u2019s domestic policy\noutlook.<\/p>\n
JCI gained 1.1%, or 66 points, to close at 6,108 after trading\nbetween 6,024 and 6,108. Trading volume reached more than 30.17 billion\nshares, with turnover totaling Rp 13.2 trillion ($734.19 million) across\nmore than 2.3 million transactions. A total of 372 stocks advanced,\nwhile 238 declined and 185 were unchanged.<\/p>\n
Pilarmas Investindo Sekuritas said most Asian markets weakened as\ninvestors monitored escalating tensions in the Middle East following\nadditional US strikes on Iranian targets.<\/p>\n
The renewed conflict sent oil prices sharply higher this week,\nreviving concerns over inflation and the outlook for interest rates.\nHowever, sentiment was partly eased after US President Donald Trump said\non Wednesday that Tehran had indicated its willingness to resume\nnegotiations.<\/p>\n
Regional markets were also weighed down by weaker economic data from\nChina. The world\u2019s second-largest economy posted its slowest GDP growth\nsince the fourth quarter of 2022, falling short of the government\u2019s 2026\ngrowth target range of 4.5% to 5%.<\/p>\n
In response, the People\u2019s Bank of China pledged stronger policy\nsupport in the second half of the year, signaling it was prepared to use\ntools such as reserve requirement ratio (RRR) cuts and reverse repo\noperations while keeping the seven-day reverse repo rate as its primary\npolicy benchmark.<\/p>\n
Despite the cautious regional backdrop, Pilarmas said Indonesia\u2019s\nmarket remained supported by the government\u2019s preparations for fiscal\nand market measures to contain inflation, particularly volatile food\nprices and rising industrial costs. \u201cS&P\u2019s decision to maintain\nIndonesia\u2019s sovereign credit rating continues to provide positive\nsentiment for domestic assets,\u201d Pilarmas said in a research note on\nThursday.<\/p>\n
The brokerage cautioned, however, that further gains could be limited\nif oil prices continue to rise. Crude has climbed above $80 per barrel\namid renewed tensions between the US and Iran, increasing the risk of\nhigher fiscal pressure.<\/p>\n
According to Pilarmas, persistently high oil prices could weigh on\nthe state budget and potentially widen Indonesia\u2019s fiscal deficit.<\/p>\n
Separately, Kiwoom Sekuritas Indonesia said investors are also\nmonitoring the government\u2019s plan to establish the Indonesia\nInternational Financial Center (PFII), which aims to attract global\ncapital through incentives including tax rates as low as 0% for up to 50\nyears, greater legal certainty, and simplified regulations.<\/p>\n
The financial hub is expected to strengthen Indonesia\u2019s\ncompetitiveness against Singapore, Dubai, and Labuan, encourage the\nrepatriation of investments currently held through overseas special\npurpose vehicles (SPVs), and host investment banks, insurance companies,\npension funds, and other financial institutions to deepen the domestic\nfinancial market.<\/p>\n
Kiwoom also noted that Bank Indonesia\u2019s share of government bond\n(SBN) holdings rose to 27.41% as of July 10, 2026, from 22.61% at the\nend of 2025, while holdings by banks and foreign investors continued to\ndecline.<\/p>\n
\u201cThis reflects Bank Indonesia\u2019s growing role in maintaining stability\nin the bond market amid weak investor demand. While it helps contain\nvolatility, it also signals increasing reliance on central bank\nfinancing, as reflected in the still-elevated 10-year government bond\nyield of 7.28%,\u201d Kiwoom said.<\/p>\n
Most Asian markets closed lower on Thursday despite easing oil prices\nafter several volatile sessions driven by the US-Iran conflict.<\/p>\n
South Korea\u2019s Kospi fell 6.4% after the Bank of Korea delivered its\nfirst interest rate hike since 2023 to curb inflationary pressures\nlinked to the conflict. Japan\u2019s Nikkei 225 dropped 2.8%, while China\u2019s\nShanghai Composite lost 1.9%. Hong Kong\u2019s Hang Seng bucked the trend,\nrising 1.4%.<\/p>\n
Overnight, Wall Street ended higher, with the S&P 500 gaining\n0.4%, the Dow Jones Industrial Average adding 0.3%, and the Nasdaq\nComposite advancing 0.6%.<\/p>\n
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