JCI and Rupiah Strengthen, Certainty Over Finance Minister Purbaya's Position Seen as Key Factor

The domestic financial market grew increasingly buoyant, marked by the continued encouraging performance of the Jakarta Composite Index (JCI) and the rupiah exchange rate. At the close of trading on Friday, 12 June 2026, the JCI rose 2.07 percent to 6,007.65, with transaction volume reaching Rp21.60 trillion. A total of 615 stocks strengthened, 108 weakened, and 93 remained unchanged. Similarly, the rupiah showed its strength, moving further away from the 18,000 level. The currency closed at Rp17,860 per US dollar, sharply strengthening by 128 points or 0.71 percent from the opening trade.

This positive rally was partly triggered by certainty from the palace regarding the retention of Finance Minister Purbaya Yudhi Sadewa, a move that provides policy stability assurance for investors. “Stability at the ministerial level sends a positive signal to investors because it reduces short-term policy uncertainty,” said Esther Sri Astuti, a lecturer at the Faculty of Economics and Business at Diponegoro University (Undip) in Semarang, on Friday.

Esther assessed that the confirmation of Minister Purbaya’s status provides legal certainty and a clear fiscal policy direction, so investors no longer hesitate to channel their capital back into Indonesia. However, Esther cautioned that to maintain the strengthening momentum of the rupiah and JCI in the long term, Indonesia must fulfil seven fundamental conditions considered by global investors. “First, legal certainty for doing business in Indonesia,” Esther explained. Second, good economic market prospects. Third, adequate availability of raw materials. “Fourth, a supportive ecosystem. Fifth, integration into the global supply chain. Sixth, availability of good energy, electricity, water, and other infrastructure. Seventh, harmonisation of regulations between agencies, both central and regional,” she said. If these seven factors can be met, Esther stated, foreign capital inflows will more easily enter and strengthen the rupiah exchange rate as well as the domestic capital market.