Indonesia’s stock market showed resilience amid global economic challenges, with the Jakarta Composite Index (JCI) rising by 0.34% in the week ending July 24. This upward trend occurred despite a backdrop of foreign investor withdrawals and broader economic uncertainties across the globe. The Indonesia Stock Exchange’s market capitalization reached Rp 10,870 trillion, buoyed by a significant increase in trading activity. The average daily trading turnover jumped 41% to Rp 19.76 trillion, demonstrating robust domestic engagement.
Nevertheless, foreign investors continued to divest from Indonesian assets, maintaining a net selling position. To date, these outflows have amounted to Rp 79.09 trillion this year, highlighting a cautious approach towards investments in the region. This trend reflects broader concerns over the country’s economic outlook amid external pressures.
One of the key factors affecting market sentiment was the rise in global oil prices, driven by escalating tensions in the Middle East. Additionally, the introduction of new U.S. tariffs, including a 10% levy on certain Indonesian goods, added to the market’s cautious stance. These developments have raised concerns about potential headwinds for Indonesia’s trade and economic growth.
Indonesia’s Finance Ministry acknowledged the potential impact of increased oil prices on the 2026 state budget, noting that it could exert additional pressure. However, the ministry emphasized that the country’s overall fiscal health remains stable, suggesting confidence in Indonesia’s ability to navigate these challenges.