Indonesian Stocks Rise as Manufacturing Returns to Growth, Fed Data Looms
Indonesian Stocks Rise as Manufacturing Returns to Growth, Fed Data Looms
Jakarta. Indonesian stocks rose at Tuesday’s open after stronger domestic manufacturing data and easing geopolitical tensions lifted sentiment, though investors remained cautious ahead of key US labor market data that could shape the Federal Reserve’s next policy move.
Jakarta Composite Index (JCI) gained 20 points, or 0.33%, to 6,254 in early Tuesday trading, moving within a range of 6,254 to 6,264.
RTI data showed 696.03 million shares changed hands in the opening minutes, with a trading value of Rp 347.63 billion ($19.28 million) across 65,988 transactions. Gainers outnumbered losers, with 315 stocks advancing, 109 declining, and 215 remaining unchanged.
Phintraco Sekuritas said Indonesia’s manufacturing activity rebounded in July, with the Manufacturing Purchasing Managers’ Index (PMI) rising to 50.2 from 46.9 in June, marking its highest level since February 2026. Manufacturing output also returned to growth after contracting for four consecutive months, although the expansion remained modest.
The brokerage also noted that Indonesia’s trade deficit narrowed to $0.45 billion in June from $1.61 billion in May. Exports grew 8.84% year-on-year, recovering from a 5.73% contraction in May, while imports accelerated 34.27% from 22.16%.
Meanwhile, annual inflation eased to 2.88% in July from 3.34% in June after the country recorded a 0.14% month-on-month deflation, driven by lower food, beverage and tobacco prices during the harvest season. Phintraco added that August’s reduction in non-subsidized fuel prices could further moderate inflation.
Kiwoom Sekuritas Indonesia, however, warned that inflationary pressures could re-emerge due to potential food supply disruptions linked to El Niño and stronger demand from the government’s Free Nutritious Meals (MBG) program.
“This condition is expected to keep Bank Indonesia maintaining monetary policy focused on exchange rate stability and inflation control,” Kiwoom said.
Globally, market sentiment improved after geopolitical tensions in the Middle East eased, with US President Donald Trump canceling plans for military strikes on Iran and leaving the door open for renewed peace talks. Even so, Kiwoom said investors remain cautious as the US-Iran conflict enters its sixth month, US gasoline prices stay above $4 per gallon, and inflation remains elevated.
“Investor focus this week is on a series of US employment data, including JOLTS job openings, ADP employment, weekly jobless claims, and the Nonfarm Payrolls report, which will provide clues on the Federal Reserve’s next policy direction,” Kiwoom said.
Overnight on Wall Street, the S&P 500 climbed 1.5% to 7,600.50, the Nasdaq Composite jumped 2.1% to 25,913.90, and the Dow Jones Industrial Average advanced 1.3%.
As of 9:30 a.m. Jakarta time, Asian markets traded lower, with Japan’s Nikkei falling 0.60%, South Korea’s Kospi declining 0.17%, Hong Kong’s Hang Seng slipping 0.48%, and China’s Shanghai Composite edging down 0.19%.