Jakarta. Indonesian stocks surged on Wednesday, with the benchmark Jakarta Composite Index (JCI) gaining 105 points, or 1.69%, to close at 6,373 as investors weighed domestic market reforms, Bank Indonesia leadership and the upcoming MSCI review.

JCI moved between 6,272 and 6,373 during the session. Trading volume exceeded 34.4 billion shares, with turnover reaching Rp 17.38 trillion ($151.80 million) across more than 2 million transactions. A total of 452 stocks advanced, 175 declined and 168 were unchanged.

Pilarmas Investindo Sekuritas said the rally was partly driven by market attention to the future leadership of Bank Indonesia.

“The House of Representatives’ Commission XI will conduct a fit and proper test for sole candidate BI Governor Destry Damayanti,” Pilarmas wrote in a research note Wednesday.

President Prabowo Subianto previously nominated Destry, who currently serves as BI's senior deputy governor, as the sole candidate to lead the central bank. Her nomination is seen as supporting monetary policy continuity given her experience in the field.

Markets are also awaiting the outcome of MSCI’s August 2026 review, with investors hoping Indonesia’s capital market reforms will encourage the index provider to lift its freeze on Indonesian stocks under review.

“IDX officials also hope MSCI can objectively assess the level of transparency in Indonesia’s capital market, particularly after various reforms have been implemented,” Pilarmas said.

Global developments remained another focus, particularly US-Iran negotiations and the Federal Reserve’s monetary policy outlook.

Hopes for a US-Iran deal strengthened after Pakistan’s defense minister said Washington and Tehran were close to reaching an agreement. Uncertainty over the reopening of the Strait of Hormuz, however, remains high after Iran said the waterway would stay closed until its demands are met.

A prolonged closure has pushed US crude oil prices above $83 a barrel, potentially keeping inflationary pressures elevated.

“Market participants are also cautious ahead of the release of the latest US inflation data, which could influence the Fed’s next policy decision,” Pilarmas said.

Markets are pricing in the possibility of the Fed raising interest rates by 25 basis points in September after holding rates at its July meeting. Higher oil prices have added to concerns over inflation.

Chicago Fed President Austan Goolsbee also said the central bank was more concerned about inflation remaining too high than a potential weakening in the labor market.

Across Asia, Tokyo’s Nikkei 225 gained 0.8%, South Korea’s Kospi rose 3.7% and the Shanghai Composite added 0.3%. Hong Kong’s Hang Seng, however, slipped 1%.

On Wall Street Tuesday, the S&P 500 fell 0.3% for its second modest decline since hitting an all-time high Friday. The Dow Jones Industrial Average dropped 184 points, or 0.3%, while the Nasdaq Composite declined 0.6%.

Add as a preferred source on Google +