Jakarta. Indonesian stocks opened higher on Friday, with the index (JCI) rising 0.27% to 6,315 after closing lower in the previous session, as investors weighed stronger domestic liquidity against renewed global inflation and interest-rate concerns.

JCI moved between 6,311 and 6,323 in early trading. RTI data showed 1.01 billion shares had changed hands in the opening minutes, with total transactions reaching Rp 212.44 billion ($11.85 million) across 48,082 trades. A total of 220 stocks rose, 151 fell and 263 were unchanged.

Phintraco Sekuritas said higher oil prices, rising US bond yields and a weaker rupiah were among the factors weighing on the market.

Despite the pressure on stocks, domestic liquidity continued to expand. Indonesia's broad money supply, or M2, grew 8.2% year-on-year to Rp 10,448.1 trillion in August 2026, according to Phintraco Sekuritas. The growth was slightly slower than the 8.3% recorded in July, mainly due to a slowdown in narrow money, or M1, growth to 9% from 10%.

Quasi-money growth, meanwhile, accelerated to 6.5% from 5.6%. Rupiah demand deposits grew at a slower pace of 7.1%, compared with 10.9% in July, while rupiah savings deposits that can be withdrawn on demand accelerated to 8.9% from 6.8%. Net claims on the central government also contracted 7%, reversing growth of 4.6% in the previous month.

Phintraco Sekuritas said the increase in M2 pointed to solid domestic liquidity, supported particularly by strong bank credit growth of 13.3% year-on-year.

The shift of funds toward rupiah savings and the increase in quasi-money also suggested that economic players were becoming more adaptive in managing short-term liquidity while taking advantage of competitive deposit rates, the brokerage said.

The combination of strong credit growth and healthy liquidity could provide a positive backdrop for major banking and consumer stocks, which could gradually attract investor attention.

"Meanwhile, higher oil prices could provide positive sentiment for energy-sector stocks and related issuers," Phintraco Sekuritas said.

Kiwoom Sekuritas Indonesia said global markets were facing renewed inflation concerns as oil prices climbed, while higher US Treasury yields pressured stock valuations.

US economic data also showed business activity continued to strengthen in September, recording its fastest growth since July 2021. However, price pressures increased, with inflation reaching its highest level since October 2022.

The developments raised expectations of a potential Federal Reserve rate hike in October. According to CME FedWatch, the probability of a 25-basis-point rate hike next month stood at around 69%, up from about 55% a week earlier.

Pluang Research described the current bond-market conditions as resembling "the rubble after an explosion" and said it was assessing whether the move was a temporary overreaction or the beginning of a longer period of rising yields.

"What makes this situation different from a normal correction is the convergence of three pressures at once: inflation caused by energy prices that have surged since the Iran war, continued expansion in government spending, and the possibility of further tightening by the Fed, which just raised interest rates last week," Pluang Research said.

The repeated failure of Bessent's buyback program to reach its maximum target, even amid the worst selloff in several months, also underscored the limits of short-term policy tools in addressing such significant structural pressures, it said.

Overnight, Wall Street ended mixed. The S&P 500 was little changed at 7,704, while the Nasdaq Composite was also essentially flat at 26,939. The Dow Jones Industrial Average fell to 51,349.

In regional trading on Friday, Tokyo's Nikkei rose 1.23%, while Hong Kong's Hang Seng fell 1.83% and Shanghai's SSE declined 1.22%.

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