JCI Climbs After BI Keeps Rate at 5.75%
JCI Climbs After BI Keeps Rate at 5.75%
Jakarta. Jakarta stocks jumped 53 points, or 0.83%, to 6,447 at Thursday’s opening, as investors digested Bank Indonesia’s decision to keep its benchmark interest rate unchanged and improving sentiment from global markets.
Jakarta Composite Index (JCI) moved between 6,444 and 6,456 in the opening minutes. A total of 955.79 million shares changed hands, with trading valued at Rp 422.46 billion ($23.71 million) across 68,682 transactions, according to RTI data. Some 347 stocks gained, 98 declined, and 229 were unchanged.
As widely expected, Bank Indonesia on Wednesday kept its benchmark BI Rate at 5.75% for the second consecutive month. The Deposit Facility and Lending Facility rates also remained unchanged at 4.75% and 6.5%, respectively.
Phintraco Sekuritas said the decision was in line with Bank Indonesia’s efforts to strengthen rupiah stability, keep inflation within its target range, and support sustainable economic growth.
The central bank also maintained its 2026 economic growth forecast at 4.9%-5.7% year-on-year, with growth expected to be supported by the government’s stimulus programs and sustained confidence among economic players.
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BI Keeps Rate at 5.75% in AugustBank lending grew 13.58% year-on-year in July 2026, accelerating from 12.67% in June, according to Phintraco Sekuritas. The improvement was supported by Bank Indonesia’s accommodative macroprudential policies, including the optimization of its Macroprudential Liquidity Incentive Policy (KLM) to encourage lending to priority sectors.
Kiwoom Sekuritas Indonesia, meanwhile, said investment was increasingly emerging as a key driver of economic growth as government strategic projects moved forward.
Indonesia’s economy expanded 5.29% in the second quarter of 2026, while gross fixed capital formation grew 6.87%, supported by both construction and non-construction investment. Projects in industrial estates, special economic zones, and other strategic areas have begun entering the groundbreaking stage, while government spending also supported economic activity.
Bank Indonesia maintained its 2026 growth forecast at 4.9%-5.7%, with current growth moving toward the midpoint to the upper end of that range, Kiwoom said. Macroeconomic stability also remained intact, supported by foreign exchange reserves of $145.3 billion.
Global sentiment also improved after the US Treasury Department announced plans to double the size of its long-term bond buybacks to at least $4 billion per operation from $2 billion previously, starting Sept. 9.
“This policy eased pressure in the bond market and helped support equities,” Kiwoom said.
Wall Street closed higher on Wednesday as a decline in US Treasury yields gave stocks room to rebound from losses in previous sessions. The S&P 500 rose 0.21%, the Nasdaq Composite gained 0.16%, and the Dow Jones Industrial Average advanced 0.22%.
At 9:26 a.m. Jakarta time on Thursday, Japan’s Nikkei gained 0.96%, while South Korea’s Kospi surged 6.59%. Hong Kong’s Hang Seng rose 0.80%, and China’s Shanghai Composite added 0.55%.
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