Indonesia’s stock market showed resilience with the Jakarta Composite Index (JCI) climbing 0.34% in the week concluding on July 24, despite persistent challenges such as foreign investor withdrawals and global economic uncertainties. This uptick was buoyed by robust trading activity, which indicated a strong domestic interest in market engagement.
The market capitalization of the Indonesia Stock Exchange saw a boost, reaching Rp 10,870 trillion. In tandem, the average daily trading turnover experienced a significant surge of 41%, hitting Rp 19.76 trillion. These figures underscore a vibrant local trading scene even as foreign investors continued to withdraw funds, leading to a net outflow totaling Rp 79.09 trillion for the year to date. This trend highlights a cautious approach by international investors toward Indonesian assets amid broader economic concerns.
External factors have also played a role in shaping market sentiment. Global oil prices have been on the rise due to escalating tensions in the Middle East, contributing to an uncertain economic outlook. Additionally, new tariffs imposed by the United States on imports from several countries, including a 10% tariff on certain Indonesian goods, have added to the mix of challenges facing the market.
Despite these headwinds, Indonesia’s Finance Ministry remains optimistic about the country’s fiscal stability. While acknowledging that increased oil prices could place additional strain on the 2026 state budget, officials assert that the overall fiscal position is sound. This confidence is crucial as Indonesia navigates the complex interplay of local and international economic pressures.