JCI and Rupiah Strengthen After Prabowo's 2027 Budget Speech
Why JCI and Rupiah Strengthened After Prabowo’s Address
Reporter
August 14, 2026 | 09:23 pm
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) strengthened 1.59 percent to 6,401.89 on Friday, August 14, 2026, after President Prabowo Subianto delivered his state address and introduced the 2027 Draft State Budget (RAPBN). Chief Economist of Trimegah Sekuritas Indonesia, Fakhrul Fulvian, assessed that the positive market response demonstrated the increasingly clear direction of Prabowo administration’s economic policies.
Fakhrul described this speech as the most convincing for the capital market since Prabowo took office because it clearly outlined his economic policies. In the 2027 RAPBN, the government targets economic growth of 6 percent, higher than the 2026 State Budget (APBN) target of 5.4 percent.
The government also set a deficit of 2.4 percent of Gross Domestic Product (GDP) in the 2027 RAPBN, lower than the 2026 APBN target of 2.68 percent. Although the target deficit is lower, Fakhrul said the market is looking at more than just the deficit’s size. It is also looking at how the government creates growth, attracts investment, and stimulates the private sector.
“The market always looks at the bigger story than just the deficit figures. They want to know how growth will be generated, how capital will flow in, and how businesses can gain the confidence to invest,” said Fakhrul.
He assessed that several of Prabowo’s agendas, including downstreaming, the Indonesia Financial Center, the Commodity Exchange, the Gold Bank, and capital market reform, were aimed at mobilizing economic resources more productively. He stated that deepening capital markets and the return of private investment were key to growth, although investors were still awaiting a roadmap and concrete implementation of these policies.
According to Fakhrul, the challenge moving forward is ensuring that the development vision is translated into consistent and predictable policies for market players, not formulating it.
In addition to JCI, the rupiah also strengthened against the US dollar at the close of trading today. The rupiah strengthened 50 points (0.28 percent) to Rp17,827 per US dollar, from the previous close of Rp17,877. Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today, reaching Rp 17,836 per US dollar, up from Rp 17,882.
Doo Financial Futures currency analyst Lukman Leong stated that the rupiah’s strengthening was a positive market response to President Prabowo’s 2027 RAPBN speech. “The rupiah strengthened against the US dollar, and the Jakarta Composite Index (JCI) rose due to the positive investor response to President Prabowo’s RAPBN speech. I view this as cautiously positive,” he said, as quoted by Antara.
In his speech, the Head of State targeted economic growth to increase by 6 percent from the 2026 APBN assumption of 5.4 percent, inflation of 2.5 percent, a budget deficit set at Rp671.2 trillion or 2.4 percent of GDP with total spending of Rp4,097 trillion, then the interest rate on 10-year Government Securities (SBN) of 6.9 percent, the rupiah exchange rate of Rp17,500 per US dollar or higher than Rp16,500 per US dollar in the 2026 APBN.
Next, the price of Indonesian crude oil is US$75 per barrel, up from the 2026 benchmark of US$70 per barrel. Crude oil lifting is 610,000 barrels per day, in line with 2026 assumptions. Finally, natural gas lifting is at 954,000 barrels of oil equivalent per day (BOEPD), down from the 984,000 BOEPD that was set in the 2026 APBN assumptions.
The poverty reduction target is in the range of 6-6.5 percent, an improvement from the 2026 target of 6.5-7.5 percent. The open unemployment rate is 4.3-4.87 percent, the human capital index is 0.575, and the Gini ratio is 0.362-0.367. “The growth, rupiah, and deficit targets are still acceptable to investors,” Lukman said.
Read: Analyst Says Prabowo’s Speech Lifts Sentiment as JCI Gains 0.56%
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