During the week ending July 24, Indonesia’s main stock index, the Jakarta Composite Index (JCI), experienced a rise of 0.34%. This increase was supported by heightened trading activity, despite ongoing foreign investor outflows and prevailing global economic concerns. The market capitalization of the Indonesia Stock Exchange swelled to Rp 10,870 trillion, while the average daily trading turnover saw a substantial 41% increase, reaching Rp 19.76 trillion.
Despite these positive trading figures, foreign investors continued to be net sellers, with the cumulative outflows amounting to Rp 79.09 trillion so far this year. This trend reflects a cautious stance towards Indonesian assets amidst the current global financial landscape. Investor sentiment has been adversely affected by rising global oil prices, which have been influenced by escalating tensions in the Middle East.
Moreover, new tariffs imposed by the United States on imports from several trading partners have added another layer of uncertainty to the market. This includes a 10% tariff on specific Indonesian goods, which could potentially impact the country’s trade dynamics and economic outlook.
In light of these developments, Indonesia’s Finance Ministry has acknowledged that the increase in global oil prices might pose pressure on the 2026 state budget. However, they maintained that the nation’s overall fiscal position remains robust and stable, suggesting a degree of resilience in the face of these external challenges.