Rare Record in Indonesia: JCI Surges Amidst BI Rate and Pertamax Price Hikes

Indonesian financial market is projected to still face pressure today even though it closed stronger yesterday. On Wall Street, US stocks were mixed in trading on Tuesday, early Wednesday morning Indonesian time. The S&P 500 index fell 0.26% to close at 7,386.65. Meanwhile, the Nasdaq Composite corrected 0.97% to 25,678.82. In contrast, the Dow Jones Industrial Average rose 86.10 points, or 0.17%, to 50,872.11. The semiconductor sector ETF, iShares Semiconductor ETF (SMH), fell 1% after surging 6% on Monday. Previously, the ETF had slumped 10% last Friday, its worst daily drop in six years, due to investor concerns that the artificial intelligence (AI)-driven chip stock rally had been too high and too fast. Shares of Micron Technology fell 1% after soaring 10% the previous day. Last week, Micron’s stock plunged about 20% in just two days, including a 13% drop on Friday. Meanwhile, Broadcom, which also suffered a sharp two-day decline last week, fell 1% as its recovery rally on Monday lost steam. The market initially strengthened in early trading as energy prices fell amid hopes for a more permanent cessation of conflict in the Middle East. West Texas Intermediate (WTI) crude oil futures fell 3.4% to close at US$88.20 per barrel. The decline occurred after US Energy Secretary Chris Wright said ship traffic in the Strait of Hormuz had increased significantly. Additionally, President Donald Trump stated that a deal between the US and Iran could possibly be reached within two or three days, which would allow the Strait of Hormuz to reopen soon. Although energy stocks in the S&P 500 fell 1.6%, the decline in oil prices generally provided positive sentiment for the market. The materials and consumer discretionary sectors led the gains, while the property sector was also boosted by better-than-expected existing home sales data. In contrast, the information technology sector fell nearly 2%. Jay Hatfield, CEO of Infrastructure Capital Advisors, said investors are starting to shift funds from long-term growth stocks to stocks more sensitive to economic cycles, such as Home Depot, which could benefit if the Strait of Hormuz returns to normal operations. According to Hatfield, aside from June typically not being a strong month for the stock market, recent selling pressure was also triggered by the planned SpaceX IPO scheduled for the end of this week. “I think everyone is a bit nervous. The market is likely to fluctuate until the SpaceX IPO passes,” Hatfield told CNBC International. On the other hand, OpenAI secretly filed IPO documents on Monday night, further increasing enthusiasm for the AI investment theme. Meanwhile, SpaceX is scheduled to list on the stock exchange on Friday and is touted as the largest IPO in history. Some investors assess that the IPO could extend the AI-supported market rally. However, others worry that SpaceX’s valuation of US$1.75 trillion could mark the peak of the current AI trend euphoria. The Indonesian financial market today will still be faced with dynamics ranging from war to investors who continue to monitor domestic fiscal resilience and the continuation of global macroeconomics. 1. War Heats Up, But Oil Prices Fall The United States (US) launched an attack on Iran on Tuesday after President Donald Trump said Tehran shot down a US Apache helicopter in the Strait of Hormuz. Trump said the US responded with a “very powerful” attack, although he confirmed that the helicopter’s two pilots survived. Iranian media reported the attack hit Qeshm Island and the Sirik region around the Strait of Hormuz. Meanwhile, a US official said the Apache helicopter was downed by an Iranian attack drone. Iranian Foreign Minister Abbas Araqchi did not directly discuss the incident but warned that the presence of foreign forces increases the risk of clashes. Iran also denied conducting offensive air operations in the Strait of Hormuz in the last 24 hours and threatened to respond if attacked again. The incident potentially hampers US-Iran peace efforts that Trump previously said were nearly reached. The US military stated that the two helicopter crew members were successfully rescued in waters near Oman and are in stable condition. At the same time, Israel attacked the port city of Tyre in southern Lebanon, killing at least eight people. The attack complicates efforts to expand the ceasefire in the region, amid the ongoing conflict between Israel, Hezbollah, and Iran. The Strait of Hormuz also remains a major point of dispute. Iran continues to restrict shipping in the world’s vital energy route, while the US maintains pressure on Tehran. Trump emphasised that a peace deal must ensure Iran cannot develop nuclear weapons, while Iran demands the lifting of sanctions and recognition of its control over the Strait of Hormuz. Despite heating up again, oil prices fell on Tuesday after US Energy Secretary Chris Wright said ship traffic in the Strait of Hormuz had increased significantly. In trading on Tuesday, West Texas Intermediate (WTI) crude oil futures fell 3.4% to close at US$88.20 per barrel. Meanwhile, Brent crude fell 2.98% to US$91.45 per barrel. Yesterday’s closing price was the lowest since 20 April 2026, or in seven weeks. 2. Non-Subsidised Fuel Prices Rise, Pertamax Soars PT Pertamina officially adjusted non-subsidised fuel prices starting Wednesday, 10 June 2026. This increase came just 10 days after the government raised non-subsidised fuel prices on 1 June 2026. Based on the PT Pertamina Patra Niaga website, Pertamina officially raised the price of Pertamax (RON 92) fuel to Rp 16,250 per litre as of Wednesday, 10 June 2026.