Jakarta. Indonesian stocks surged on Thursday as easing concerns over US monetary tightening and a smooth leadership transition at Bank Indonesia (BI) lifted investor confidence.

The Jakarta Composite Index (JCI) jumped 72 points, or 1.09%, during Thursday's trading. The index moved between 6,614 and 6,681, with more than 40.5 billion shares changing hands in 2.4 million transactions worth Rp 18.42 trillion ($1.04 billion).

A total of 402 stocks advanced, compared with 213 decliners, while 180 remained unchanged.

Pilarmas Investindo Sekuritas said the rally was driven by improving external sentiment and the market's positive response to the leadership transition at BI.

Domestically, investors welcomed the inauguration of Destry Damayanti as the new BI governor on Wednesday.

Destry became the first woman to lead Indonesia's central bank. Under her leadership, she has pledged to keep BI's policies responsive to economic challenges while maintaining stability and supporting economic growth.

"The smooth leadership transition at BI has become a positive signal for market participants," Pilarmas said.

The brokerage said the inauguration reinforced expectations of continuity in BI's monetary policy. Certainty over the central bank's policy direction remains an important consideration for investors in shaping their stock market strategies.

External sentiment also improved after US private-sector employment data pointed to a slowing labor market. ADP Employment Change data showed private-sector job growth slowing to 38,000 in August 2026 from 46,000 in the previous month.

"The data indicates that US private-sector job growth has begun to slow. This has strengthened market expectations that pressure on the Federal Reserve to maintain a tight interest-rate policy could ease," Pilarmas wrote in its research note on Thursday.

Positive sentiment was also supported by comments from New York Federal Reserve President John Williams, which indicated there was no urgent need for further interest-rate hikes, according to Pilarmas.

Meanwhile, US President Donald Trump said renewed US attacks against Iran could take place within a short period, helping ease market concerns over the possibility of a prolonged conflict in the Middle East.

Falling oil prices provided another catalyst for equities, as lower crude prices could help ease inflationary pressures while reducing energy costs.

Improving economic activity across Asia also added to the positive sentiment. Japan's services sector expanded in August, with the S&P Global Japan Services PMI Business Activity Index rising to 52.5.

In China, the RatingDog General Services PMI increased to 51.4 in August from 50.4 in July.

"The improvement in services activity in both countries was mainly supported by stronger domestic demand. This provides a positive signal for the outlook of economic growth across Asia," Pilarmas added.

Elsewhere in the region, Tokyo's Nikkei 225 fell 0.2%, while South Korea's Kospi rose 0.3%. Hong Kong's Hang Seng edged down 0.6%, while the Shanghai Composite Index gained less than 0.1%.

The regional market performance followed gains on Wall Street, where the benchmark S&P 500 rose 0.5% on Wednesday. The Dow Jones Industrial Average climbed 0.6%, while the technology-heavy Nasdaq Composite gained 0.5%.

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