Throughout the week concluding on July 24, Indonesia’s primary financial gauge, the Jakarta Composite Index (JCI), experienced a modest rise of 0.34%. This increase was largely driven by heightened trading activity, even as the nation faced persistent withdrawal of foreign investments and escalating global economic uncertainties.
There was a notable expansion in the market capitalization of the Indonesia Stock Exchange, reaching Rp 10,870 trillion. Concurrently, the average daily trading turnover saw a substantial boost, climbing 41% to Rp 19.76 trillion. Despite these positive trends, foreign investors continued to offload Indonesian assets, leading to a cumulative outflow of Rp 79.09 trillion for the year, indicative of a cautious approach toward the country’s market conditions.
Contributing to the apprehension in market sentiment were the increasing global oil prices, a consequence of intensified conflicts in the Middle East, and the introduction of new tariffs by the United States. These tariffs affected imports from numerous trading partners, including a specific 10% levy on selected goods from Indonesia.
The Indonesian Finance Ministry has recognized that the rising oil prices could potentially exert additional strain on the nation’s state budget for 2026. Nonetheless, they expressed confidence in the stability of Indonesia’s overall fiscal situation despite these external pressures.