Jakarta Composite Index Opens 0.43% Higher at 5,305
The Jakarta Composite Index (JCI) opened higher on Thursday (29 October 2026), at 5,305.20, up 22.89 points or 0.43% from the previous session’s close of 5,282.31.
Trading volume stood at 17.14 million lots, with transaction value reaching Rp694.36 billion.
Pressure on Indonesia’s financial markets is expected to ease today after the Federal Reserve held interest rates. However, the release of US PCE inflation data and developments in the war could weigh on share and rupiah movements. A surge in Indonesian government bond yields will also be in focus.
Here are some of the day’s key market drivers:
- The Fed holds interest rates
The Federal Reserve (the Fed) kept its benchmark interest rate at 3.75%-4.00%, but Thursday’s (29 October 2026) decision was not unanimous. Two officials, Lisa Cook and Beth Hammack, supported a 25-basis-point increase.
The Fed said inflation remained high and left the door open to further rate adjustments. Chair Kevin Warsh declined to signal the direction of the next policy move, while stressing that the central bank was still working to bring inflation back to its 2% target.
Warsh also said the US economy was strengthening, with first-half 2026 growth revised up to 2.4%. However, high interest rates continue to push up borrowing costs and affect investment, including the development of artificial intelligence (AI) infrastructure.
Markets put the probability of a rate increase in December at about 80%. The yield on 10-year US Treasuries rose to 5.042% after the decision was announced.
- US PCE inflation for September 2026
The US is due to release its September Personal Consumption Expenditures (PCE) inflation data today, Thursday (29 October), at 19:30 WIB.
For context, PCE inflation was 3.4% year on year in August 2026, while core inflation was 3.0%.
Core PCE inflation, which excludes food and energy, is expected to rise by 0.3% month on month in September 2026, up from 0.2% in August. Annually, core inflation is forecast to increase to 3.1% from 3.0%.
The data is important because PCE is one of the key inflation measures used by the Fed when setting monetary policy.
- US jobless claims
The US will also publish jobless claims data for the week ending 24 October 2026.
Initial US jobless claims fell by 6,000 to 194,000 in the week ending 17 October 2026, their lowest level since mid-July and below the market expectation of 200,000, according to the US Department of Labour.
The decline suggests the labour market remains solid amid economic uncertainty. Strong corporate earnings and resilient domestic demand have helped contain a wave of redundancies.
However, high energy costs resulting from the US-Israel war with Iran, uncertainty over Federal Reserve policy and trade policy are clouding companies’ hiring decisions.
- ECB interest rates in October 2026
The European Central Bank (ECB) will announce its decision today at 20:15 WIB, followed by a press conference at 20:45 WIB. The consensus forecast is for the main refinancing rate to remain at 2.65% and the deposit facility rate at 2.50%.
Attention is focused on the ECB’s response to inflation risks and slowing growth. Any decision to hold rates needs to be considered alongside the bank’s communication, particularly its comments on the possibility of further tightening and its assessment of energy cost pressures.
For global markets, a change in the ECB’s tone could affect the euro, European bonds and the dollar’s relative movement. Since the announcement is close to major US data releases, investors will need to assess the two developments together rather than in isolation.