JCI Opens Up 0.17%, Returns to 7,000 Level

The Jakarta Composite Index (JCI) opened stronger by 0.17% this morning, Tuesday (7 April 2026). The index rose to the level of 7,001.28, or up 11.85 points. A total of 86 stocks declined, 224 rose, and 295 remained unchanged. Trading value reached Rp99.6 billion, involving 188.95 million shares in 24,650 transactions. Market capitalisation also rose slightly to Rp12,232 trillion. Indonesia’s financial markets are expected to face continued pressure today. Uncertain developments in the ongoing war, along with domestic economic concerns, could weigh on the JCI and the rupiah. Statements from stock exchange officials regarding Indonesia’s weight in the MSCI index could add to the burden today. However, the greening of Wall Street may provide positive sentiment. The Indonesia Stock Exchange (IDX) does not deny the potential for a reduction in Indonesia’s index weight by Morgan Stanley Capital International (MSCI) from Emerging Market to Frontier Market. Acting IDX President Director Jeffrey Hendrik stated that realistically, this potential exists in the short term. According to him, several factors could prompt global index providers to lower Indonesia’s weight despite ongoing improvements in transparency and governance. “For example, one or two issues that might lead global index providers to reduce the weight in the short term. Yes, that potential exists. But we are also very aware that what we have been doing to address concerns from global index providers is for the long-term good of our capital market industry,” Jeffrey explained to reporters at the IDX building on Monday (6 April 2026). With enhancements in transparency, market depth, and better governance, the IDX believes Indonesia’s weight will increase in the future. Jeffrey also acknowledged that this transitional phase could create short-term pressure on the market. Previously, the Head of Capital Market, Financial Derivatives, and Carbon Exchange Supervisory Executive of the Financial Services Authority (OJK), Hasan Fawzi, stated that the OJK and IDX are preparing risk mitigation if the JCI is downgraded by MSCI. Hasan urged investors not to react reactively if a weight reduction occurs. He admitted that the ongoing capital market reforms will have short-term impacts. “There may be portfolio adjustments by domestic or global investors, which could trigger temporary selling pressure, potential outflows during rebalancing, as well as volatility and widening bid-ask spreads on certain stocks,” Hasan said during a virtual press conference on Monday (6 April 2026). However, Hasan noted that these dynamics are transitional and temporary responses. They are part of unavoidable progress. The primary focus of capital market regulators is to build a foundation of market integrity that is transparent, credible, and consistently growing. Meanwhile, Asia-Pacific stock markets strengthened in Tuesday’s trading (7 April 2026), following gains on Wall Street amid market participants’ attention to developments in the Iran conflict. Investors also monitored statements from US President Donald Trump regarding potential escalation of the conflict. Citing CNBC.com, Trump threatened to target Iran’s civilian infrastructure if a peace agreement is not reached within less than 24 hours. Nevertheless, he also signalled that Iran’s leadership is engaging in serious negotiations. Trump reiterated his demand for Iran to open the Strait of Hormuz by 8:00 p.m. local time on Tuesday. He warned that the United States would destroy Iran’s bridges and power plants within four hours if the deadline is not met. On the other hand, the United States and Iran are considering a framework agreement to end the five-week conflict. However, Tehran rejects Washington’s pressure to immediately open the Strait of Hormuz in a temporary ceasefire scheme and insists on a permanent end to the war. Iran also rejected the US ceasefire proposal and submitted a counter-proposal with 10 points, including cessation of hostilities in the region, guarantees of safe passage in the Strait of Hormuz, lifting of sanctions, and reconstruction. In response, Trump described Iran’s proposal as a significant step but not sufficient for an agreement. In commodity markets, crude oil prices strengthened amid high geopolitical tensions. West Texas Intermediate futures rose 0.7% to US$113.25 per barrel, while Brent strengthened 0.68% to US$109.77 per barrel. In stock markets, Australia’s S&P/ASX 200 surged 2.3%, leading gains in the region. Japan’s Nikkei 225 rose 0.26% and Topix added 0.23%, while South Korea’s Kospi strengthened 1.5% and Kosdaq rose 0.85%. Hong Kong markets remained closed on Tuesday for Easter holidays. Meanwhile, Wall Street futures showed mixed movements ahead of the trading open. S&P 500 futures were relatively unchanged, and Nasdaq 100 fell around 0.2%. Dow Jones Industrial Average futures rose 48 points or 0.1%, after the previous regular session where the S&P 500 rose 0.44%, Nasdaq Composite strengthened 0.54%, and Dow Jones added 165.21 points or 0.36%.