Jakarta Stocks Open Higher as Regional Markets Gain, Bond Yields Keep Investors Cautious
Jakarta Stocks Open Higher as Regional Markets Gain, Bond Yields Keep Investors Cautious
Jakarta. Jakarta stocks opened higher on Thursday, with the benchmark Jakarta Composite Index (JCI) gaining 37 points, or 0.55%, to 6,632 as improving sentiment across regional markets outweighed lingering concerns over rising global bond yields.
In early trading, the JCI moved between 6,614 and 6,638. More than 5 billion shares changed hands, generating Rp 1.96 trillion ($110.65 million) in turnover across over 290,000 transactions. A total of 337 stocks advanced, while 183 declined and 190 were unchanged.
Phintraco Sekuritas said the recent rise in government bond yields in major economies, driven by expectations of higher interest rates amid the risk of renewed inflation, could push global investors into risk-off mode.
Investors may shift their funds toward assets perceived as safer, including US Treasuries, which offer attractive yields with relatively lower risk, potentially triggering capital outflows from emerging markets.
“This could put pressure on the rupiah, push up Indonesian government bond yields, and increase companies’ cost of capital. However, domestic economic growth prospects, Bank Indonesia’s policies, rising commodity prices, and corporate actions by listed companies are expected to help offset global pressures,” Phintraco Sekuritas said.
The brokerage also pointed to the government’s agreement with the House of Representatives’ Budget Committee on the 2027 macroeconomic assumptions. The 2027 state budget draft targets 6% economic growth, 2.5% inflation, a rupiah exchange rate of Rp 17,500 per US dollar, and a 6.9% yield on 10-year government bonds.
Government spending is set to prioritize investment, infrastructure, downstream industries, food, energy, education, and healthcare. Still, Phintraco Sekuritas said investors should closely monitor the government’s fiscal credibility in managing the budget deficit.
Kiwoom Sekuritas Indonesia, meanwhile, highlighted Finance Minister Purbaya Yudhi Sadewa’s optimism that bank credit growth could eventually exceed 20% as liquidity in the financial system improves.
Base money, or M0, grew 18.3% year-on-year in July 2026, indicating relatively strong liquidity conditions. The placement of government Budget Surplus (SAL) funds in the banking system has also provided additional liquidity.
With bank credit growth standing at just 13.58% as of July, Purbaya sees significant room for further acceleration if liquidity conditions remain supportive.
“This condition could potentially drive private-sector growth and ultimately support economic growth significantly above 6%, although its realization will still depend on how effectively liquidity is transmitted into credit, investment, and real-sector activity,” Kiwoom said in its research released Thursday.
Domestic factors are also shaping market dynamics, according to Pluang Research, particularly developments in the coal sector.
Indonesia’s coal production and exports fell by around 8% year-on-year in the first five months of 2026, partly due to delays in approving the Work Plan and Budget (RKAB) quotas, which limited supply availability in the spot market. Dry conditions have also added pressure to production supply chains.
Despite strong earnings momentum, Pluang Research said several risks remain. Domestic market obligation (DMO) requirements continue to weigh on average selling prices in the short term, as a larger share of DMO sales is typically priced below international market levels.
Operating costs are also under pressure, with domestic high-speed diesel prices rising by around 35%-40% quarter-on-quarter, potentially offsetting part of the benefits from improved revenue in the coming quarters.
“Policy risks related to Danantara Sumberdaya Indonesia (DSI) and the one-door export scheme, although expected to gradually ease, remain factors to watch as implementation is still in a transition period through early 2027,” Pluang Research said.
Across Asia, markets mostly traded higher as of 9:16 a.m. Jakarta time. Japan’s Nikkei slipped 0.05%, while South Korea’s Kospi gained 0.81%. Hong Kong’s Hang Seng rose 0.65%, and China’s Shanghai Composite added 0.45%.
Wall Street ended higher on Wednesday as pressure in the bond market and surging oil prices began to ease. The S&P 500 gained 0.46%, the Nasdaq Composite rose 0.45%, and the Dow Jones Industrial Average advanced 0.56%.
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