Indonesian Stocks Rise Ahead of Inflation and GDP Data as Danantara Delays Bond Sale
Indonesian Stocks Rise Ahead of Inflation, GDP Data as Danantara Delays Bond Sale
Jakarta. Indonesian stocks rose on Monday as investors looked ahead to a busy week of economic data releases while weighing reports that Danantara had delayed its planned US dollar bond issuance.
Jakarta Composite Index (JCI) gained 36 points, or 0.59%, to 6,272 in early trading, moving between 6,246 and 6,273.
RTI data showed 1.5 billion shares changed hands in the opening minutes, with total turnover reaching Rp 656.21 billion ($36.49 million) across 103,128 transactions. Advancers outnumbered decliners, with 298 stocks rising, 170 falling, and 218 unchanged.
Kiwoom Sekuritas Indonesia said domestic sentiment was shaped by reports that Danantara had postponed plans to issue 20-year and 30-year US dollar-denominated bonds due to unfavorable conditions in the global bond market.
The brokerage said the jump in US Treasury yields has pushed investors to demand returns in the high-6% range, above Danantara’s target in the low-6% range, prompting the state investment fund to wait for more favorable market conditions.
“The delay is also influenced by rupiah weakness sentiment, a widening current account deficit, and investor caution over Danantara’s still relatively new track record,” Kiwoom said.
Kiwoom also highlighted the government’s efforts, together with the House of Representatives, to accelerate the establishment of the Indonesia International Financial Center (IIFC),or locally called PFII, as part of efforts to attract global capital amid rising geopolitical uncertainty.
The brokerage said the financial hub is expected to attract a share of the estimated $3.2 trillion in global family office assets by offering competitive regulations, legal certainty, and internationally recognized governance standards.
Meanwhile, Bank Danamon expects Indonesia’s economy to expand around 5.18% year-on-year in the second quarter of 2026, supported by government spending, resilient household consumption, and investment realization of Rp 511.8 trillion, up 7.1% from a year earlier. Foreign direct investment is projected to grow 27.5%, although slowing exports are expected to temper overall economic growth.
Phintraco Sekuritas said the JCI closed higher in July, snapping six consecutive months of negative monthly returns.
The brokerage said investors will closely watch a series of domestic economic releases this week, including manufacturing PMI, trade balance, and inflation data on Monday, second-quarter GDP figures on Wednesday, and foreign exchange reserves and the residential property price index on Friday.
Global sentiment also remained supportive after Wall Street ended higher on Friday, led by gains in technology stocks despite US Treasury yields climbing to multi-year highs.
The Dow Jones Industrial Average rose 0.53%, the S&P 500 gained 0.70%, and the Nasdaq Composite advanced 1%. Amazon jumped 15.31% after posting strong earnings, while Microsoft gained 3.10% and Nvidia rose 2.95%. Apple was the biggest drag, falling 7.35% following disappointing quarterly results.
Phintraco noted that Brent crude settled 1.2% higher, nearing $88 per barrel, bringing its gain for July to nearly 24% – its strongest monthly performance since March – as geopolitical tensions and concerns over global oil supply intensified.
The brokerage said investors will continue monitoring developments in the US-Iran conflict for their impact on crude prices and inflation expectations. Market sentiment is also expected to be influenced by volatility in AI-related stocks ahead of earnings reports from SpaceX and AMD this week.
As of 9:11 a.m. Jakarta time, Japan’s Nikkei fell 1.81%, South Korea’s Kospi dropped 4.71%, Hong Kong’s Hang Seng rose 0.30%, and China’s Shanghai Composite slipped 0.44%.
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