During the week ending July 24, Indonesia’s primary stock gauge, the Jakarta Composite Index (JCI), experienced a modest rise of 0.34%. This uptick was driven by intensified trading activities, even as the market faced ongoing challenges from the outflow of foreign investments and escalating global economic uncertainties.
The market capitalization of the Indonesia Stock Exchange reached Rp 10,870 trillion, and the average daily trading turnover saw a notable increase of 41%, reaching Rp 19.76 trillion. Despite these positive indicators, foreign investors continued to be net sellers, resulting in cumulative outflows totaling Rp 79.09 trillion so far this year. This trend highlights a cautious approach towards Indonesian assets among international investors.
Investor sentiment has been negatively impacted by the surge in global oil prices, a result of rising tensions in the Middle East. Additionally, the implementation of new US tariffs on imports from various trading partners, including a 10% tariff on specific Indonesian goods, has added to the market’s concerns.
The Indonesian Finance Ministry has acknowledged that the increase in oil prices could put additional pressure on the 2026 state budget. However, they have reassured that the country’s overall fiscal position remains stable, suggesting resilience in the face of these economic challenges.