The Jakarta Composite Index (JCI), Indonesia’s primary stock market indicator, showed a modest increase of 0.34% over the week ending July 24. This uptick came amid intensified trading activities, despite ongoing withdrawals by foreign investors and escalating uncertainties in the global economy.
The market capitalization on the Indonesia Stock Exchange climbed to Rp 10,870 trillion, while the average daily trading volume saw a significant rise of 41%, reaching Rp 19.76 trillion. Despite this, foreign investors continued to divest, leading to a cumulative net outflow of Rp 79.09 trillion for the year. This trend underscores a cautious approach towards Indonesian assets among international investors.
Investor sentiment was further influenced by the rise in global oil prices, driven by increased tensions in the Middle East. Additionally, new tariffs imposed by the United States on imports from several countries, including a 10% tariff on select Indonesian goods, added to the market’s concerns.
In response to these developments, Indonesia’s Finance Ministry has acknowledged the potential impact of higher oil prices on the country’s 2026 state budget. Nevertheless, the ministry reassured that Indonesia’s overall fiscal condition remains stable, suggesting resilience in the face of these economic challenges.