JCI Strengthens to 6,455 Following Expected Fed Rate Hike
The Indonesia Composite Index (JCI) on the Indonesia Stock Exchange (IDX) opened stronger this morning (17/09). This positive movement occurs as market players have already priced in the decision to raise the benchmark interest rate by the US central bank, the Fed.
The JCI opened up 18.18 points or 0.28 per cent to the 6,455.03 position. In line with the main index, the blue-chip 45 stocks group, or the LQ45 Index, also rose 2.97 points or 0.46 per cent to the 649.93 level.
Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, explained that the JCI is currently in a crucial phase. If the index fails to hold above the 6,430–6,377 level, the potential for further correction towards 6,290 remains open. However, if a rebound occurs, the JCI needs to break through the nearest resistance at 6,451–6,516 and 6,537–6,552 before testing the 6,723 area.
From an international perspective, the Fed officially raised interest rates by 25 basis points (bps) to 3.75–4.00 per cent. The latest economic projections show the median Fed rate will be around 4.1 per cent by the end of 2026. Fed Chair Kevin Warsh emphasised that inflation remains the primary focus with a data-driven approach.
Energy commodity prices have begun to correct after briefly surging due to tensions in the Middle East. Supply concerns eased after Saudi Arabia sought to restore the capacity of the East-West Pipeline, which was damaged by a drone attack, and offered additional oil volumes to Asian refineries. Brent crude prices fell to 105.46 USD per barrel, while WTI dropped to 102 USD per barrel.
Internally, Fitch Ratings maintained the Indonesia Investment Authority (INA) rating at BBB with a negative outlook, consistent with Indonesia’s sovereign rating. Government support for the INA is considered very strong (Virtually Certain) with a score of 45/60.
Furthermore, investment cooperation between Indonesia and China through the Two Countries Twin Parks (TCTP) programme continues to be strengthened. A new commitment worth 19.4 billion Renminbi (approximately IDR 51 trillion) has been recorded, bringing the total TCTP investment commitment to IDR 88.1 trillion. The main focus of this cooperation includes the development of strategic industrial zones and the integration of global supply chains.
Global market conditions were observed to be varied. Wall Street closed weaker on Wednesday (16/09), but European markets were uniformly stronger. In Asia this morning, the Nikkei rose 0.12 per cent and the Kospi rose 0.07 per cent, while the Hang Seng and Shanghai moved in the red, weakening by 1.21 per cent and 0.40 per cent respectively.