JCI closes higher, supported by BI decision to hold BI-Rate

Jakarta (ANTARA) – The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed higher on Thursday afternoon, supported by market participants’ response to Bank Indonesia’s (BI) decision to keep the BI-Rate at 5.75 per cent.

The JCI rose 59.54 points, or 1.12 per cent, to 5,387.90. The LQ45 index, comprising 45 leading shares, gained 8.81 points, or 1.64 per cent, to 544.57.

“The JCI strengthened, supported by BI’s decision to maintain the benchmark interest rate at 5.75 per cent for the fourth consecutive month, while also raising the deposit facility rate by 25 basis points to support rupiah stability,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Thursday.

Nico said BI would also gradually reduce the statutory reserve requirement (GWM) from 1 November 2026, a move intended to add around Rp190 trillion in liquidity to the banking system.

President Prabowo stressed that Indonesia would not be intimidated by the plan.

Internationally, market sentiment was weighed down by rising crude oil prices after a deadly attack on an oil field in Saudi Arabia heightened geopolitical tensions in the Middle East and intensified inflation concerns.

Meanwhile, Asian markets were mostly lower as selling pressure on technology and artificial intelligence (AI) shares picked up again, driven by continued concerns over the sustainability of heavy investment in the AI sector.