Jakarta. Jakarta Composite Index (JCI) opened 28 points, or 0.47%, higher at 6,068 on Wednesday, extending its gains as softer-than-expected US inflation boosted global risk appetite. The benchmark index traded within a range of 6,047 to 6,074 in early trading.

By the opening minutes, 689.31 million shares had changed hands with a trading value of Rp 347.87 billion ($19.27 million) across 94,954 transactions, according to RTI data. Advancers outnumbered decliners, with 235 stocks rising, 150 falling, and 273 remaining unchanged.

Phintraco Sekuritas said S&P Global Ratings projects Indonesia's state budget deficit to reach 2.9% of GDP in both 2026 and 2027, while the government's debt-to-GDP ratio is expected to rise to 40.6% in 2026 and 40.7% in 2027.

The brokerage also noted that S&P expects the government to reduce funding for the Free Meals (MBG) program by around Rp 100 trillion from the previously planned Rp 300 trillion, likely through adjustments to the program's parameters, efficiency improvements, and stronger oversight.

"The measure is considered necessary to keep the fiscal deficit below the 3% threshold, particularly as crude oil prices strengthen again," Phintraco said.

Separately, Phintraco highlighted the Indonesia Stock Exchange's (IDX) new screening methodology, which introduces a price-impact ratio criterion to identify stocks with potential High Shareholding Concentration (HSC).

"The new criterion enables the IDX to screen stocks that experience significant price movements without sufficient trading activity to support them," the brokerage said.

The price-impact ratio measures changes in a stock's price relative to its trading velocity, with velocity defined as the average trading volume compared with the number of publicly available shares. Stocks that record sharp price gains despite low trading volumes will produce a high price-impact ratio and may be flagged for potential HSC monitoring.

"The IDX has added 37 stocks to the HSC watchlist, bringing the total to 51," Phintraco said.

Global sentiment was supported by weaker-than-expected US inflation data for June, according to Kiwoom Sekuritas Indonesia. Headline inflation fell 0.4% month-on-month, marking the steepest monthly decline since April 2020, while annual inflation eased to 3.5%, below the 3.8% consensus estimate. Core inflation was flat on a monthly basis and came in at 2.6% year-on-year, also below the expected 2.9%.

The decline was largely driven by a 9.7% monthly drop in gasoline prices following the reopening of the Strait of Hormuz in the middle of last month.

"The softer inflation data gives the Federal Reserve room to keep interest rates unchanged at its meeting later this month. Even so, Fed officials including Chris Waller and Austan Goolsbee have emphasized that the central bank still needs more consistent data before deciding to pause rate hikes in the second half of 2026," Kiwoom said.

Wall Street ended higher overnight after the inflation report eased concerns over price pressures despite rising oil prices amid fears that tensions between the United States and Iran could escalate into a broader conflict. The S&P 500 gained 0.4%, recovering part of the previous session's 0.8% decline, while the Dow Jones Industrial Average edged up 9 points. The Nasdaq Composite advanced 0.9%.

Across Asia, markets traded mostly higher as of 9:12 a.m. Jakarta time. Japan's Nikkei rose 0.70%, Hong Kong's Hang Seng gained 1.36%, Shanghai's SSE Composite added 0.17%, and South Korea's Kospi surged 5.66%.

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