Jakarta. Jakarta Composite Index (JCI) opened sharply higher on Thursday, jumping 41 points, or 0.46%, to 9,052.16, with the index trading firmly in the green within a range of 9,039 - 9,058 in early dealings.

Market data from RTI showed 2.24 billion shares changing hands in the opening minutes, with a total trading value of Rp 1.21 trillion ($71.58 million) across 127,481 transactions. Gainers dominated the session, with 352 stocks advancing, while 127 declined and 186 remained unchanged.

Domestic sentiment remained supportive after Bank Indonesia (BI) left its benchmark interest rate unchanged at 4.75%, in line with market expectations, according to Pilarmas Investindo Sekuritas’ Thursday morning research. The policy stance was accompanied by a modest strengthening of the rupiah, which appreciated to Rp 16,930 per USD on Wednesday afternoon from Rp 16,970 previously.

BI reiterated its commitment to maintaining currency stability and supporting rupiah strength through market perception management, spot market intervention, domestic non-deliverable forwards (DNDF), offshore NDF operations, and optimization of monetary instruments. These measures are backed by solid fundamentals, easing inflation, attractive rupiah-denominated asset yields, and robust foreign exchange reserves of around $156 billion.

In its research note, Pilarmas stated that recent rupiah pressures have largely stemmed from external factors and global sentiment rather than domestic weaknesses. While volatility persists due to short-term capital flows and hedging activities, BI’s interventions have been effective in containing excessive fluctuations. At the same time, rising local currency transactions and the gradual expansion of non-dollar markets are helping reduce reliance on the US dollar, although the impact remains incremental. Overall, the rupiah is seen to be in a stabilization phase, with room for appreciation as global sentiment improves, with BI opting to preserve its policy ammunition for now.

Global cues also lifted sentiment after Wall Street rebounded overnight. US equities staged a strong recovery on Wednesday following comments from Donald Trump, who said he had reached a framework for a deal concerning Greenland and would not proceed with previously threatened tariffs on several European countries.

The S&P 500 rallied 1.2%, recovering more than half of its 2.1% decline from the previous session and moving closer to its all-time high set earlier this month. The Dow Jones Industrial Average surged 588 points, or 1.2%, while the Nasdaq Composite also climbed 1.2%.

Trump acknowledged that markets had sold off earlier in the week due to his comments on Greenland but downplayed the move, calling it “peanuts” compared with gains recorded during the first year of his second term. While his policy style has often unsettled markets before being dialed back, investors have grown accustomed to the pattern, which has at times resulted in outcomes seen as less damaging to growth or inflation than initially feared.

Asian markets followed Wall Street higher on Thursday. Japan’s Nikkei 225 surged 0.83% to 53,327, South Korea’s Kospi jumped 1.56% to 4,987, Hong Kong’s Hang Seng Index rose 0.61% to 26,750, and China’s Shanghai Composite Index added 0.24% to 4,126.

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