Jakarta. Indonesia's benchmark stock index opened higher on Thursday after Bank Indonesia kept its benchmark interest rate unchanged and rolled out stronger incentives to attract foreign capital, while investors also tracked gains across most Asian markets.

Jakarta Composite Index (JCI) rose 12 points, or 0.19%, to 6,346 at the open.

In the first few minutes of trading, the index moved within a range of 6,338 to 6,355. More than 2 billion shares changed hands with a turnover of Rp 606.44 billion ($33.85 million) across over 116,000 transactions. Advancers outnumbered decliners 253 to 164, while 248 stocks were unchanged.

Kiwoom Sekuritas Indonesia said Bank Indonesia's decision to leave the BI-Rate at 5.75%, the Deposit Facility at 4.75%, and the Lending Facility at 6.50% at its July 21-22 policy meeting supported market sentiment.

According to the brokerage, the central bank opted to strengthen incentives for foreign portfolio investment instead of raising interest rates, viewing the approach as a more effective way to stabilize the rupiah without increasing domestic funding costs amid global uncertainty.

Bank Indonesia also expanded several measures to attract foreign capital, including increasing the Sell Hedge Swap incentive from 10% to 12.5%, raising the Sell Hedge DNDF incentive to 15%, and providing additional incentives for Local Currency Transaction (LCT) settlements.

"This policy is expected to strengthen rupiah exchange rate stability while deepening the domestic money and foreign exchange markets," Kiwoom said.

The brokerage also highlighted the resilience of Indonesia's financial sector after domestic credit rating agency PEFINDO published 143 rating reports covering 59 financial services entities in the first half of 2026, with banks accounting for the largest share.

"All entities maintained a stable outlook with no rating changes, with the majority sitting in the investment-grade category, reflecting the still solid fundamental condition of Indonesia's financial services sector," Kiwoom said.

Globally, investor sentiment remained cautious ahead of earnings reports from major US technology companies, which are expected to shape the next phase of the artificial intelligence-driven market rally.

Kiwoom said investors are closely watching Alphabet's capital expenditure guidance after the company previously earmarked $180 billion-$190 billion for AI investments in 2026.

"On the other hand, concerns over the scale of AI investments and uncertainty surrounding capital return timelines continue to weigh on the market, causing semiconductor stocks, which previously led the rally, to correct by more than 20% from their peaks," Kiwoom said.

Overnight on Wall Street, the S&P 500 slipped 0.1%, the Dow Jones Industrial Average was little changed, and the Nasdaq Composite fell 0.6%.

As of 9:08 a.m. Jakarta time on Thursday, most Asian markets were trading higher. Japan's Nikkei 225 gained 0.83%, South Korea's Kospi surged nearly 3%, Hong Kong's Hang Seng rose 0.86%, and China's Shanghai Composite added 0.16%.

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