JCI strengthens following global markets amid AI euphoria

Jakarta (ANTARA) - The Indonesia Composite Index (JCI) on the Indonesia Stock Exchange (IDX) moved upwards on Tuesday, following gains in the US Wall Street stock market, which were supported by euphoria surrounding artificial intelligence (AI).

The JCI opened stronger by 82.62 points, or 1.35 per cent, to reach 6,210.00. Meanwhile, the LQ45 index, comprising 45 blue-chip stocks, rose by 5.05 points, or 0.83 per cent, to 616.22.

“Global markets are still supported by AI euphoria, despite the risks of energy inflation arising from the US-Iran conflict which have not yet subsided,” stated Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas, in a research report in Jakarta on Tuesday.

Internationally, the MSCI World, MSCI Asia ex-Japan, MSCI EM, the Wall Street Big Three, and Japan’s Nikkei recorded new record highs, while the South Korean market surged by approximately 4 per cent.

This global market rally is occurring amidst a K-shaped US economy, where personal saving rates are at historic lows while large corporations enjoy an explosion in artificial intelligence spending. Meanwhile, Yardeni Research estimates that the US Federal Reserve will shift towards a tightening bias during the FOMC meeting on 16-17 June 2026, and may raise interest rates by 25 bps in July 2026. Yardeni highlighted that US CPI, PPI, and PCE data have returned to their highest levels since 2023, while the Cleveland Fed projects May inflation to reach 4.18 per cent (yoy) and Atlanta Fed GDPNow estimates second-quarter economic growth at 3.8 per cent.

“Market participants’ focus has now shifted to US employment data, specifically the Nonfarm Payrolls this Friday, which could serve as a major catalyst for market movement,” said Liza.

Domestically, the government has begun operating PT Danantara Sumberdaya Indonesia (DSI) as a State-Owned Enterprise (SOE) for exports to support a single-door export policy for strategic commodities starting 1 June 2026. The initial phase includes coal, CPO, and ferroalloys, which contribute approximately 66.1 billion USD, or 23.4 per cent of total national exports, with full implementation targeted for 1 January 2027.

To support the repatriation of foreign exchange, Finance Minister Purbaya Yudhi Sadewa has offered income tax (PPh) incentives of up to 0 per cent for exporters who place natural resource foreign exchange earnings (DHE SDA) within the country. Additionally, a relaxation allows a maximum placement of 30 per cent of foreign exchange earnings in non-Himbara banks for up to three months for exporters with bilateral agreements with trading partners.

Meanwhile, Bank Indonesia (BI) is strengthening Rupiah stabilisation through foreign exchange market interventions, SBN purchases, and restrictions on foreign exchange purchases without underlying documentation to 25,000 USD per month starting June 2026. In the financial sector, the LPS has maintained Deposit Guarantee Interest Rates for the June–September 2026 period at 3.50 per cent (Rupiah commercial banks), 6.00 per cent (BPR), and 2.00 per cent (Foreign Currency).

Furthermore, the government has issued regulations allowing energy SOEs to import oil, petroleum products, and LPG through direct appointment under certain conditions to maintain national energy security.

“Amid emerging controversies regarding new government regulations and policies, Kiwoom Research suggests not opening overly aggressive ‘Buy’ positions (maintaining mini lots) and sticking to quick trading modes. Pay attention to sector rotations that benefit from market catalysts/sentiment,” advised Liza.

In previous trading on Monday (01/05), European markets were uniformly weaker, including the Euro Stoxx 50 falling 0.23 per cent, the UK FTSE 100 falling 0.68 per cent, the German DAX falling 0.40 per cent, and the French CAC 40 falling 0.45 per cent. Conversely, US Wall Street markets all gained on Monday (01/05), with the Dow Jones Industrial Average rising 0.09 per cent, the S&P 500 rising 0.26 per cent, and the Nasdaq Composite rising 0.60 per cent. Regional Asian markets this morning included the Nikkei rising 1,054.33 points or 1.58 per cent to 65,880.00, the Shanghai index falling 5.43 points or 0.13 per cent to 4,052.31, the Hang Seng rising 348.82 points or 1.37 per cent to 25,747.00, and the Straits Times rising 30.91 points or 0.61 per cent to 5,068.78.