S&P Rating Boost Keeps Jakarta Stocks Above 6,000 at Tuesday Open
S&P Rating Boost Keeps Jakarta Stocks Above 6,000 at Tuesday Open
Jakarta. Jakarta Composite Index (JCI) rose 20 points, or 0.33%, to 6,057 at Tuesday’s open after S&P Global Ratings reaffirmed Indonesia’s sovereign credit rating, although trading remained volatile amid lingering global uncertainties.The benchmark index moved in a volatile range between 6,002 and 6,065 in the opening minutes.
Data from RTI showed 1.62 billion shares traded early in the session, with total turnover reaching Rp 1.67 trillion ($92.24 million) across 238,406 transactions. Advancers outpaced decliners, with 273 stocks gaining, 163 falling, and 212 unchanged.
Phintraco Sekuritas said the positive sentiment was driven by S&P Global Ratings’ decision to reaffirm Indonesia’s long-term sovereign credit rating at ‘BBB’ and short-term rating at ‘A-2’, with a stable outlook.
The agency assessed that the recent weakening in Indonesia’s fiscal and external positions is temporary and likely to improve alongside rising commodity prices and government efforts to boost state revenues.
According to Phintraco, the stable outlook reflects expectations of stronger export revenues as commodity prices recover. “With the reaffirmation of Indonesia’s rating, investor confidence in the domestic equity market is expected to improve, potentially driving foreign capital inflows and supporting a continued rebound in the JCI today,” Phintraco Sekuritas said.
The firm added that S&P projects Indonesia’s economy to grow 5.1% in 2026, before averaging 4.9% annual growth over 2026–2029, supported by fiscal spending, downstream industrialization, and improved natural resource management.
“However, S&P also warns that rapid policy changes and uncertainty in implementation could affect investor confidence and put pressure on financial markets and the rupiah,” Phintraco added.
Kiwoom Sekuritas Indonesia, however, noted that global sentiment has shifted toward risk-off amid concerns over the outlook for AI infrastructure spending and renewed tensions in the Middle East.
The sell-off in technology stocks followed a sharp correction in South Korean semiconductor shares, as concerns grew that AI demand may be slowing and sector valuations are overstretched.
At the same time, rising oil prices driven by US-Iran tensions have revived global inflation risks, prompting investors to reduce exposure to riskier assets.
“Market focus this week is fixed on the release of US inflation data (CPI and PPI) as well as the start of the second-quarter earnings season, which are expected to provide further clues regarding the direction of the Fed’s interest rate policy,” Kiwoom said
Oil prices surged on Monday after a weekend of attacks in the Middle East. Brent crude jumped 9.6% to $83.30 per barrel after both the United States and Iran claimed control over the Strait of Hormuz, disrupting tanker traffic from the Persian Gulf and pushing global fuel prices higher.
On Wall Street, the S&P 500 fell 0.8%, snapping part of its recent gains after four winning weeks out of five. The Dow Jones Industrial Average dropped 138 points, or 0.3%, while the Nasdaq Composite slid 1.6%.
As of 9:21 a.m. Jakarta time, regional markets were mostly lower. Japan’s Nikkei declined 0.43%, South Korea’s Kospi fell 0.87%, Hong Kong’s Hang Seng slipped 0.24%, and China’s Shanghai Composite edged down 0.25%.
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