Jakarta Stocks Jump 1.3% as Investors Eye Danantara Export Rollout, Inflation Data
Jakarta. Jakarta Composite Index (JCI) jumped 83 points, or 1.33%, to 6,210 at Tuesday's opening bell, extending gains as investors assessed the rollout of Indonesia's new export reporting mechanism and awaited the release of key inflation data.
The benchmark index traded within a range of 6,183 to 6,252 during early trading.
After 10 minutes of trading time, RTI data showed trading volume had reached 4.9 billion shares, with turnover totaling Rp 4.27 trillion ($238 million) from more than 384,000 transactions. Gainers outnumbered losers 343 to 243, while 244 stocks were unchanged.
Phintraco Sekuritas said exports of three key commodities -- coal, crude palm oil, and ferroalloys -- through Danantara Sumber Daya Indonesia (DSI) officially began on June 1. The implementation marks a transition period during which exporters are required to report their export activities through DSI.
"Investors will pay close attention to the transparency of the policy's implementation and how it affects the performance of related listed companies," Phintraco Sekuritas said.
The brokerage also highlighted the government's plan to provide tax incentives for exporters that place proceeds from natural resource exports (DHE SDA) in the domestic financial system. The Finance Ministry will offer lower income tax rates, with the rate determined by how long exporters keep their funds onshore, potentially reaching zero percent.
"Exporters will benefit from lower tax costs, competitive interest rates, and the ability to use the funds as loan collateral. Banks, meanwhile, will gain access to low-cost foreign currency funding and stronger liquidity," Phintraco Sekuritas said.
Investors are also awaiting Indonesia's May inflation data scheduled for release later on Tuesday. Phintraco Sekuritas expects annual inflation to accelerate to 3.1% from 2.42% in April, while monthly inflation is forecast to rise to 0.2% from 0.13%.
Regional markets were mostly weaker as of 9 a.m. Jakarta time. Japan's Nikkei fell 1.30% and South Korea's Kospi lost 1.48%. Hong Kong's Hang Seng gained 0.20%, while China's Shanghai Composite edged down 0.05%.
On Wall Street overnight, the S&P 500 rose 0.3%, extending gains after setting a record high on Friday. The Dow Jones Industrial Average added 46 points, or 0.1%, while the Nasdaq Composite climbed 0.4%, with both indexes also reaching fresh highs.
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