Jakarta. Indonesian stocks extended their rally on Friday, with the Jakarta Composite Index (JCI) climbing 23 points, or 0.35%, to a fresh three-month high of 6,524, even as weakness on Wall Street and rising US Treasury yields clouded the global outlook.

The index moved between 6,507 and 6,543 during the session. Trading volume reached 5.59 billion shares, with turnover totaling Rp 2.42 trillion ($136.61 million) across more than 320,900 transactions. A total of 277 stocks gained, while 222 declined and 207 were unchanged.

Phintraco Sekuritas said investors should remain cautious over negative external sentiment, particularly heading into the weekend.

Domestic attention has also turned to planned changes in Indonesia Stock Exchange (IDX) trading rules.

The IDX plans to lower the minimum share price on the regular and cash markets to Rp 1 from Rp 50 per share. It also plans to remove several criteria for placing stocks on the Special Monitoring Board.

Among the criteria to be scrapped are Criterion 1, which covers stocks with an average price below Rp 51 and low liquidity over the past three months, and Criterion 11.2, which applies to listed companies that no longer meet other Special Monitoring Board criteria but whose share prices have yet to reach Rp 50.

The exchange also plans to revise its auto-rejection limits. For the lower auto-rejection (ARB), shares priced between Rp 1 and Rp 10 will be subject to a Rp 1 limit based on their nominal value. Stocks priced between Rp 11 and Rp 200, Rp 201 and Rp 5,000, and above Rp 5,000 will each have a 15% lower-limit threshold.

For the upper auto rejection (ARA), stocks priced between Rp 1 and Rp 10 will also be subject to a Rp 1 limit based on their nominal value. The upper limit will be set at 35% for shares priced between Rp 11 and Rp 200, 25% for those between Rp 201 and Rp 5,000, and 20% for shares priced above Rp 5,000.

The proposed changes will be tested with exchange members on Aug. 22 and Aug. 29, with implementation targeted for Sept. 7.

Meanwhile, Kiwoom Sekuritas Indonesia said the government's ambition to push economic growth close to 6% in 2027 faces growing challenges from narrowing fiscal space and declining productive spending.

Under the 2027 State Budget Draft, capital expenditure is projected to fall by nearly 20% to Rp 295.2 trillion from an estimated Rp 367.4 trillion in 2026. At the same time, employee spending is set to rise to Rp 625.2 trillion, while debt interest payments are projected to reach Rp 650.3 trillion.

PermataBank Chief Economist Josua Pardede said the budget structure creates a tension between the government's higher growth target and declining spending that directly supports the economy's productive capacity.

He estimates Indonesia's economic growth at around 5.22% in 2027 and said the government needs to protect high-leverage spending, including infrastructure, education, healthcare, technology, and skills development.

Global sentiment, however, remained negative. Kiwoom said the renewed rise in US Treasury yields has put further pressure on equity valuations, while Walmart's disappointing results added to concerns about the strength of US consumer purchasing power.

Minutes from the Federal Reserve's July meeting also showed that many officials continue to see upside risks to inflation and remain open to further interest rate hikes if inflation does not ease.

“Investors will next eye economic data and inflation developments to gauge the Fed's policy stance in September,” Kiwoom said.

Wall Street closed lower on Thursday after a rally in US government bonds, triggered by the Treasury's move to increase long-term bond buybacks, reversed and yields climbed again. The S&P 500 fell 0.87%, the Nasdaq Composite lost 1.00%, and the Dow Jones Industrial Average dropped 1.32%.

As of 8:54 a.m. Jakarta time on Friday, Japan's Nikkei was down 0.80%. South Korea's Kospi was volatile and last traded 0.20% lower, while Hong Kong's Hang Seng gained 0.54%. China's Shanghai Composite fell 0.41%.

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