The Jakarta Composite Index (JCI), Indonesia’s main stock market indicator, saw a rise of 0.34% for the week ending on July 24, buoyed by increased trading activity despite the ongoing withdrawal of foreign investments and a backdrop of global economic uncertainty.
The Indonesia Stock Exchange experienced a boost in its market capitalization, reaching Rp 10,870 trillion, while the average daily trading turnover climbed by 41% to Rp 19.76 trillion. Despite these positive trends, foreign investors continued to sell off their holdings, with net outflows totaling Rp 79.09 trillion so far this year, indicating a prevailing cautious approach towards Indonesian assets.
Investor sentiment was further dampened by rising global oil prices, spurred by escalating tensions in the Middle East, and the introduction of new U.S. tariffs on imports from several countries, including a 10% tariff on specific Indonesian goods.
The Indonesian Finance Ministry has acknowledged the potential impact of higher oil prices on the 2026 state budget. However, they maintain that the country’s fiscal position remains stable, emphasizing a resilient economic outlook despite these challenges.