During the week ending July 24, the Jakarta Composite Index (JCI) in Indonesia experienced a modest increase of 0.34%, buoyed by robust trading activities. This rise occurred despite the challenges posed by persistent foreign investor outflows and the looming uncertainties in the global economy. The Indonesia Stock Exchange witnessed its market capitalization ascend to Rp 10,870 trillion, with average daily trading turnover seeing a significant surge of 41%, reaching Rp 19.76 trillion.
Despite these positive domestic developments, foreign investors continued to retreat, acting as net sellers. Cumulative outflows have amounted to Rp 79.09 trillion for the year to date, indicating a cautious stance toward Indonesian assets amidst global economic volatility. The investors’ reticence can be attributed to several factors impacting market sentiment, including the escalation of global oil prices driven by heightened tensions in the Middle East.
Additionally, the introduction of new U.S. tariffs has further complicated the economic landscape. These tariffs, including a 10% levy on certain Indonesian goods, have strained trade relations with several partners and added pressure to the market. This development comes as part of broader U.S. trade policies targeting imports, which have reverberated across international markets.
In light of these challenges, Indonesia’s Finance Ministry has acknowledged the potential impact of rising oil prices on the nation’s fiscal plans, specifically the 2026 state budget. However, the ministry remains confident in the stability of Indonesia’s overall fiscal position, suggesting that the country is well-equipped to navigate these external pressures while maintaining economic stability.