Jakarta.  Jakarta Composite Index (JCI) rose 29 points or 0.40% to 7,086 at Wednesday’s open, tracking global market optimism despite the rupiah hitting fresh lows and concerns over Indonesia’s external balance.

Within the first 10 minutes, the JCI moved between 7,049 and 7,117, with trading volume reaching 4.2 billion shares and turnover totaling Rp 2.3 trillion ($132.38 million) across more than 300,000 transactions. Advancers outnumbered decliners 271 to 235, while 196 stocks were unchanged.

Kiwoom Sekuritas Indonesia said market sentiment improved after US President Donald Trump signaled a temporary halt to operations in the Strait of Hormuz and suggested a potential agreement with Iran was nearing, prompting investors to price in the possibility of de-escalation despite ongoing military exchanges and blockades.

“Risk appetite remains strong, driven by a decline in oil prices of more than 3% and solid US earnings, with investors focusing more on fundamentals than geopolitical risks that have not fully subsided,” Kiwoom said in its research note on Wednesday.

The brokerage added that optimism surrounding artificial intelligence continued to fuel global equities, pushing the MSCI All Country Index, the S&P 500, the Nasdaq, and Taiwan’s stock market to fresh record highs.

“However, behind this optimism, the market remains wary of potential re-escalation in the Middle East and uncertainty over the conflict's duration, given Trump’s ‘TACO’ reputation,” Kiwoom said.

On the domestic front, Indonesia’s economy grew 5.61% year-on-year in the first quarter of 2026, exceeding expectations. However, Kiwoom said the expansion was heavily driven by government spending, which surged 21.81%, and fiscal programs such as the free nutritious meals program (MBG), which has reportedly reached up to 60 million portions per day with turnover estimated at Rp 900 billion daily.

According to Kiwoom, the growth figures have yet to reflect broad-based improvements in the real economy.

Investment, measured by gross fixed capital formation (GFCF), rose 5.96% year-on-year, supported by downstream industrial projects under sovereign wealth fund Danantara worth around $7 billion (Rp 120 trillion). However, the projects have so far created only around 6,000 jobs, while the mining sector contracted 2.14% due to restrictions in the RKAB work plan and budget approval process.

Externally, the rupiah weakened to around Rp 17,400 per US dollar as imports rose 7.18% year-on-year, far outpacing export growth of just 0.90%. Foreign investors have also recorded net sales of Rp 46.5 trillion year-to-date.

“This growth is still largely supported by fiscal stimulus and early-stage projects, and therefore has not been reflected in quality real indicators such as wages, poverty, consumption, or improvements in the external balance,” Kiwoom said.

The brokerage noted that the rupiah had weakened further to as low as Rp 17,454 per US dollar during Tuesday’s intraday trading session.

President Prabowo Subianto is expected to summon Bank Indonesia Governor Perry Warjiyo, Finance Minister Purbaya Yudhi Sadewa, and other economic officials to the Presidential Palace, with authorities still opting to “wait and monitor” market conditions rather than introduce aggressive intervention measures.

Across Asia as of 9:15 a.m. Jakarta time, South Korea’s Kospi jumped 5.86% to 7,343, Hong Kong’s Hang Seng gained 0.53% to 26,034, and China’s Shanghai Composite rose 1.09% to 4,157. Japan’s markets remained closed for a national holiday.

Wall Street closed at fresh records overnight after easing oil prices and stronger-than-expected corporate earnings boosted investor confidence. The S&P 500 rose 0.8% to surpass its previous all-time high set last week, while the Dow Jones Industrial Average climbed 356 points, or 0.7%. The Nasdaq Composite advanced 1% to another record close.

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