Jakarta. Indonesian stocks opened higher on Friday as easing domestic political and security concerns, alongside greater clarity over Bank Indonesia’s leadership, lifted investor sentiment after several days of market pressure.

Jakarta Composite Index (JCI) rose 14 points, or 0.21%, to 6,535 in early trading. The index moved between 6,533 and 6,543.

According to RTI data, 888.47 million shares changed hands in the opening minutes, with trading valued at Rp 359.45 billion ($20.3 million) across 65,776 transactions. A total of 271 stocks advanced, 111 declined, and 252 were unchanged.

Phintraco Sekuritas said investors responded positively to easing political and security risks after markets had come under pressure in recent days amid concerns over domestic conditions. The House of Representatives has also set a target to pass the Asset Forfeiture Bill into law by Dec. 15, 2026.

The brokerage also pointed to greater certainty over Bank Indonesia's leadership after the House’s Commission XI approved Destry Damayanti as the central bank's governor for the 2026-2031 term.

Destry will officially replace Perry Warjiyo, who resigned as BI governor on July 25, 2026, while Aida S. Budiman will assume the position of senior deputy governor.

“This is expected to reduce uncertainty over BI's future monetary policy direction while maintaining stability and investor confidence in Indonesia's capital market,” Phintraco Sekuritas said.

Separately, sovereign wealth fund Danantara Indonesia has allocated $1 billion to Swiss asset manager Partners Group for investments in private credit.

Of the total, $600 million will be invested in direct lending opportunities, while the remaining $400 million will be placed in a discretionary tranche managed by Partners Group and used for co-investment needs.

Global sentiment was also broadly positive, particularly toward technology and artificial intelligence stocks, after Nvidia's latest earnings reinforced confidence that the AI infrastructure spending cycle remains intact.

Pluang Sekuritas noted that Nvidia reported revenue and profit that more than doubled and projected 70% growth next year, far above the market consensus of 44%. Its shares jumped 9%, although other AI chip and hardware stocks were largely unchanged, while the Nasdaq gained less than 2%.

“Investors no longer see good news from Nvidia as good news for the entire AI supply chain. It is worth noting that with a valuation of more than $5 trillion, passive investors automatically hold Nvidia at around 5% in global index funds, 8% in S&P 500 index funds, and more than 20% in technology sector funds,” Pluang said in its research released Friday.

Kiwoom Sekuritas Indonesia, however, said the positive sentiment remained overshadowed by macroeconomic risks, particularly persistently elevated inflation and growing expectations that the Fed could raise interest rates again before year-end.

“However, this optimism remains overshadowed by macroeconomic risks, particularly persistently elevated inflation and growing expectations that the Fed could raise interest rates again before year-end,” Kiwoom said.

US core PCE inflation rose 0.2% month-on-month and 3.3% year-on-year in July, remaining well above the Federal Reserve's 2% target, while the US economy expanded at an annualized 1.5% in the second quarter.

“These conditions could potentially make the market more volatile as investors become increasingly sensitive to inflation developments, labor data, interest rate policy, and the direction of trade policy,” Kiwoom said.

Overnight on Wall Street, the S&P 500 rose 0.72%, the Nasdaq Composite gained 1.57%, and the Dow Jones Industrial Average added 0.20%.

Across Asia, markets were mixed as of 9:21 a.m. Jakarta time. Japan's Nikkei rose 0.83%, while South Korea's Kospi fell 0.95%. Hong Kong's Hang Seng edged up 0.09%, and Shanghai's SSE Composite gained 0.22%.

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