Jakarta. Indonesian stocks climbed 39 points or 0.79% to close at 5,105 on Monday, supported by easing inflation, a widening trade surplus and stronger manufacturing activity that reinforced confidence in the country's economic stability.

The Jakarta Composite Index (JCI) moved between 4,981 and 5,125 during the session. Trading volume reached 35.4 billion shares, with a total transaction value of Rp 12.42 trillion ($685.02 million) across more than 1.45 million transactions. A total of 315 stocks advanced, 285 declined and 118 remained unchanged.

Pilarmas Investindo Sekuritas highlighted easing inflation and Indonesia's trade surplus as key domestic factors supporting the market, alongside a return to expansion in manufacturing activity.

Central Statistics Indonesia (BPS) reported that monthly inflation slowed to 0.22% in October 2026 from 0.30% in September. Annual inflation also eased to 3.23% from 3.28% over the same period.

"With these figures, Indonesia's inflation remains within Bank Indonesia's (BI) target range of 2.5%, plus or minus 1%," Pilarmas wrote in its research note on Monday.

Another positive indicator was Indonesia's trade balance, which recorded a $3.36 billion surplus in September 2026. Exports reached $27.59 billion, while imports stood at $24.23 billion.

Manufacturing activity also strengthened, with Indonesia's Manufacturing Purchasing Managers' Index (PMI) rising to 54.0 in October from 52.4 in September.

"An index above 50 indicates that the manufacturing sector remains in expansion territory. The increase was supported by a surge in demand for domestic products, which drove production volumes and new orders higher," Pilarmas added.

In the capital market, Pilarmas noted that the Indonesia Stock Exchange (IDX) began excluding stocks with high shareholding concentration (HSC) from the JCI calculation on Monday.

The IDX president director said the adjustment was not expected to trigger extreme market volatility. The weight of excluded HSC stocks would instead be redistributed proportionally among other issuers that remain constituents of the index.

External developments also provided support, with Asian markets trading mostly higher and global oil prices retreating amid renewed diplomatic efforts to prevent further escalation of the conflict involving the United States, Israel and Iran.

US Secretary of State Marco Rubio said diplomatic communications with Iran were ongoing, while President Donald Trump had yet to decide whether to launch another attack against the country.

"Lower oil prices ease market concerns over inflationary pressures and potential interest rate increases. Nevertheless, investors are still monitoring the US October employment report, the ISM manufacturing and services surveys, as well as statements from several Federal Reserve officials," Pilarmas said.

Across Asia, market performances were mixed. Japan's Nikkei 225 reversed early gains to slip 0.3%, while South Korea's Kospi rose 2.2%. Hong Kong's Hang Seng gained 0.5% to 23,411.49, and the Shanghai Composite advanced 1.1%.

The gains in mainland China came despite weekend data showing that the country's factory activity returned to contraction territory in October, pointing to a possible slowdown in economic momentum.

On Friday, Wall Street ended lower, with the benchmark S&P 500 falling 1.8% and the technology-heavy Nasdaq Composite dropping 2.9%. The Dow Jones Industrial Average also declined 1.1%.

Add as a preferred source on Google +