Jakarta. Indonesian stocks rose 31 points, or 0.5%, to close at 6,351 on Wednesday, buoyed by stronger-than-expected economic growth and improving global risk sentiment as hopes grew for easing tensions between the United States and Iran.

Trading volume reached 40.3 billion shares, with turnover totaling Rp 14.9 trillion ($831.77 million) across more than 2.3 million transactions. Gainers outnumbered losers 406 to 208, while 178 stocks were unchanged.

Pilarmas Sekuritas Indonesia said the benchmark index was supported by a combination of positive domestic and global catalysts.

At home, Indonesia's economy expanded 5.29% year-on-year in the second quarter, according to Statistics Indonesia (BPS). Although slower than the 5.61% growth recorded in the previous quarter, the figure exceeded the market consensus of 5.1%.

"The result reinforces investors' confidence that Indonesia's economic fundamentals remain solid despite ongoing global economic uncertainties," Pilarmas said in a research note.

Investor sentiment also received a boost after Finance Minister Purbaya Yudhi Sadewa confirmed the government is finalizing a new incentive package to accelerate electric vehicle adoption, including subsidies of up to 40% for certain categories of electric cars.

The government said the policy aims to reduce fuel consumption while supporting the country's energy transition, strengthening the domestic automotive industry, and attracting more investment into the EV sector. Authorities are still calculating the required budget and determining vehicle eligibility before issuing the regulation.

Pilarmas said the proposed subsidy could become a positive catalyst for EV sales and accelerate the development of Indonesia's electric vehicle ecosystem.

"However, the effectiveness of the policy will largely depend on the size of the budget allocation, eligibility criteria, and implementation to ensure it can stimulate demand without placing excessive pressure on fiscal conditions," the brokerage said.

Globally, Asian equities rallied as optimism grew over a possible agreement between the United States and Iran to reopen the Strait of Hormuz, easing concerns over global oil supplies. The prospect of lower energy prices helped reduce inflation fears and tempered expectations that the Federal Reserve would raise interest rates in the near term.

Japan's Nikkei 225 climbed 3.7%, while South Korea's Kospi surged 3.8%. China's Shanghai Composite rose 1.5%, and Hong Kong's Hang Seng Index gained 0.4%.

"The decline in oil prices has reduced market expectations for a Federal Reserve rate hike in the near future," Pilarmas wrote.

The brokerage added that optimism strengthened further after Qatar said mediation efforts between Washington and Tehran had entered an advanced stage. US officials also indicated the chances of reaching an agreement in the near term had improved.

Wall Street ended sharply higher overnight. The S&P 500 jumped 1.8% to surpass its previous record high set in June, while the Dow Jones Industrial Average rose 1.7% to another all-time high. The Nasdaq Composite advanced 2.6%.

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