Indonesia’s Jakarta Composite Index (JCI) experienced a modest increase of 0.34% in the week leading up to July 24. This positive movement in the index came amid robust trading activity, even as the market faced ongoing challenges such as foreign investor withdrawals and a backdrop of global economic uncertainty.
The market capitalization of the Indonesia Stock Exchange saw an uptick, reaching Rp 10,870 trillion. Additionally, the average daily trading turnover rose significantly by 41%, amounting to Rp 19.76 trillion. Despite these promising figures, foreign investors continued to offload Indonesian assets, with total outflows accumulating to Rp 79.09 trillion so far this year. This trend highlights a cautious outlook among international investors toward the Indonesian market.
Several global factors are contributing to the cautious investor sentiment. Rising global oil prices, driven by increased tensions in the Middle East, are weighing on market perspectives. Furthermore, the imposition of new tariffs by the United States on imports from various trading partners, including a 10% duty on specific Indonesian goods, is adding to the economic pressures.
In light of these developments, Indonesia’s Finance Ministry has noted that the escalating oil prices could potentially exert additional pressure on the state budget for 2026. Despite this, the ministry maintains that Indonesia’s overall fiscal position remains stable, suggesting a level of resilience against the current economic challenges.