In the week leading up to July 24, Indonesia’s Jakarta Composite Index (JCI) saw a modest increase of 0.34%, buoyed by a rise in trading activity despite ongoing foreign investor withdrawals and the shadow of global economic uncertainties. The market capitalization of the Indonesia Stock Exchange climbed to Rp 10,870 trillion, with the average daily trading turnover experiencing a significant 41% surge to Rp 19.76 trillion.
Despite these positive local trading dynamics, foreign investors continued to retreat, marking a net sell-off that has reached Rp 79.09 trillion for the year. This trend reflects a cautious stance towards Indonesian assets amid broader market concerns. Heightened global tensions, particularly in the Middle East, have driven up oil prices, adding to the unease.
The situation is further complicated by the imposition of new tariffs by the United States on several of its trading partners, including a 10% tariff on certain goods imported from Indonesia. These developments have contributed to a wary market sentiment, influencing investment decisions.
Nonetheless, Indonesia’s Finance Ministry remains optimistic about the country’s fiscal health. While acknowledging that rising oil prices could pose challenges to the 2026 state budget, officials have asserted that the country’s overall financial standing is stable. This confidence may provide some reassurance to investors navigating the current economic landscape.