Jakarta Stocks Rise 1.21% as Indonesia Lags in AI Boom
Jakarta Stocks Rise 1.21% as Indonesia Lags in AI Boom
Jakarta. Indonesia’s benchmark stock index rose 1.21% on Tuesday, as the World Bank projected the economy to grow 5.2% in 2026 and 2027 while warning that Indonesia is lagging Malaysia and Vietnam in capitalizing on the global artificial intelligence investment boom.
Jakarta Composite Index climbed 74 points to close at 6,192, after trading between 6,120 and 6,216 during the session.
Trading volume reached 48.14 billion shares, with turnover of Rp 12.3 trillion ($687.23 million) across more than 1.8 million transactions. A total of 489 stocks advanced, 183 declined and 120 were unchanged.
The World Bank’s growth forecast indicates that Indonesia’s economy remains resilient amid global uncertainty, with private consumption and government spending expected to support growth.
However, the World Bank flagged weaker household purchasing power, conditions in the manufacturing sector, and fiscal and external pressures as risks that could weigh on economic growth.
Indonesia is also benefiting less than some regional peers from the global surge in artificial intelligence investment, according to the World Bank’s East Asia & Pacific Economic Update: October 2026 edition.
The report said the broader regional growth outlook increasingly reflects the importance of AI-related trade. Countries more deeply integrated into fast-growing AI value chains have received substantial upgrades to their export forecasts.
Malaysia and Vietnam are among the regional economies benefiting more from the expansion of AI-related activity, while Indonesia has yet to capture similar gains.
Domestically, Pilarmas Investindo Sekuritas said the World Bank’s 5.2% growth projection for Indonesia in 2026 and 2027 provided an indication that the economy remains capable of maintaining stable growth despite global uncertainty.
On the external front, stronger Asian equity markets provided one of the catalysts for Indonesian stocks, Pilarmas said. Market sentiment was also supported by lower crude oil prices amid signs of increasing supply from the Middle East.
Brent crude traded at around $100 per barrel after falling 1.9%. Higher oil exports from the Middle East and commitments by G7 countries to increase supply helped ease concerns over energy price pressures.
“The decline in oil prices has also increased investors’ risk appetite in financial markets,” Pilarmas said in a research note on Tuesday.
Another positive factor came from the United States, where weaker employment data reduced expectations of a Federal Reserve rate hike in October.
Expectations that the Fed will keep interest rates unchanged provided support for risk assets, including stocks. However, markets still expect the US central bank to keep the option of monetary tightening open toward the end of the year.
“This means investors are still watching the Fed’s policy direction and upcoming US economic data before determining their strategy in the stock market,” Pilarmas said.
Across the region, the World Bank projects East Asia and Pacific economies to grow 4.5% in 2026, highlighting the region’s resilience amid global uncertainty. The region is also expected to remain an important engine of global economic growth.
The positive regional outlook also supported Asian equities. Japan’s Nikkei 225 rose 1.1%, while South Korea’s Kospi fell 0.9% and Hong Kong’s Hang Seng gained 0.8%. Chinese markets were closed for the Golden Week holiday.
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