JCI Ends First Session Down 1.65% at 5,179
Jakarta, CNBC Indonesia — The Jakarta Composite Index (JCI) ended the first trading session in negative territory on Wednesday (28 October 2026), at 5,179.06, down 87.07 points or 1.65%.
The index fluctuated throughout the morning, briefly recovering towards 5,250 at around 9.30am WIB before coming under renewed pressure after 10am. Selling intensified towards the end of the first hour, with the index dropping sharply to around 5,180 and then moving sideways at that level until midday.
Trading volume stood at 164.77 million lots, with transactions worth Rp7.25 trillion.
Global and domestic financial markets are likely to adopt a wait-and-see stance ahead of the US Federal Reserve’s interest-rate decision. The Fed is expected to announce its policy within the next 18 hours.
Several domestic factors are also likely to weigh on share and currency movements, including student demonstrations and falling demand at government bond auctions.
The key market factors today are:
1. The Fed’s October 2026 interest-rate decision
The Fed is set to announce its interest-rate decision on Wednesday US time, or Thursday (29 October) at 1am WIB, followed by a press conference at 1.30am.
The market consensus is for the US central bank to keep rates at 3.75%-4.00%, following a 25-basis-point increase in September.
Although rates are expected to remain unchanged, investors will focus on Fed Chair Kevin Warsh’s remarks on the inflation outlook, labour-market conditions and the possibility of further tightening.
A more hawkish stance could strengthen the US dollar and put pressure on risk assets, including emerging-market shares. Conversely, signals that inflationary pressures are easing could give markets reason to reassess the US monetary-policy outlook.
For Indonesia, the Fed’s policy direction is an important factor that could affect the rupiah, foreign capital flows and the attractiveness of Indonesian government bonds (SBN).
2. Demand falls at government bond auction
Investor demand at Tuesday’s (27 October 2026) government bond auction fell sharply. Total bids amounted to just Rp31.09 trillion, down 52.1% from the previous auction and the lowest level since November 2024.
Despite weak demand, the weighted average yield awarded on bonds with a maturity of around 10 years jumped to 7.54%, its highest since November 2022. This was up 30 basis points in two weeks and around 147 basis points compared with the start of 2026.
The government raised only Rp20.65 trillion, below its indicative target of Rp30 trillion. The combination of weaker bids and higher yields points to financing pressure and could make new government borrowing more expensive.
The sharp fall in demand for SBN is raising concerns that outflows could continue, weakening shares and the rupiah.
3. Chinese industrial profits rise
Chinese industrial profits rose 15.5% year on year to CNY6.03 trillion in the first nine months of 2026. Growth eased slightly from 15.7% in January-August 2026.
Profits continued to be supported by high-tech manufacturing, artificial intelligence (AI)-related industries and electronic equipment. However, sluggish domestic demand continued to weigh on some sectors.
Profits at state-owned enterprises rose 13.1% to CNY1.94 trillion. Joint-stock companies recorded a 20.8% increase to CNY4.67 trillion, while private companies’ profits grew 8.7% to CNY1.51 trillion.