Jakarta Stocks Start Strong Post-Holiday with Debt Outlook, Trade Deal in Focus
Jakarta. Jakarta Composite Index (JCI) opened higher on Wednesday following the Lunar New Year holiday, signaling renewed investor optimism amid supportive domestic fiscal signals and mixed global cues. The index rose 23 points, or 0.27%, to 8,235 and moved within a range of 8,227 to 8,269 in early trade.
Within the first five minutes, trading volume reached 3.52 billion shares with turnover of Rp 1.7 trillion ($100.78 million) across more than 234,000 transactions. Gainers outnumbered losers, with 301 stocks advancing, 214 declining and 180 unchanged.
Phintraco Sekuritas noted that during the Indonesia Economic Outlook 2026 forum last Friday, President Prabowo Subianto said the government had achieved budget savings of Rp 380 trillion in its first year, which will be redirected to priority programs including the Free Nutritious Meals initiative.
The forum also confirmed Rp 90 trillion in investment commitments secured from previous overseas visits, aimed at supporting job creation.
Prabowo is scheduled to sign an Agreement on Reciprocal Trade with US President Donald Trump on Feb. 19 in the United States. The deal is expected to introduce a reciprocal tariff of 19% on Indonesian products, excluding crude palm oil, coffee and cocoa, while Indonesia plans to import US oil and gas worth $15 billion.
Separately, Pilarmas Investindo Sekuritas highlighted government debt data from the Finance Ministry’s Directorate General of Financing and Risk Management, showing total debt at Rp 9,637.90 trillion as of Dec. 31, 2025, with a debt-to-GDP ratio of 40.46%.
The debt structure remains dominated by government securities worth Rp 8,387.23 trillion, or 87.02%, while loans account for Rp 1,250.67 trillion. The government reiterated its commitment to prudent debt management, timely repayment and maintaining confidence among credit rating agencies.
Pilarmas assessed the debt ratio as relatively safe, remaining well below the commonly used 60% fiscal threshold. The dominance of domestic market-based financing through government securities is also viewed as supportive of financial stability by reducing reliance on foreign borrowing and exchange-rate risks.
From a market perspective, Pilarmas said consistent debt servicing and fiscal credibility could help preserve Indonesia’s credit rating and limit bond risk premiums. However, fiscal space must still be safeguarded amid rising nominal debt, potential interest-cost pressures if global rates stay elevated and funding needs for priority programs. Overall, the current debt profile is considered manageable, though fiscal discipline remains crucial for medium-term sustainability.
Global markets were mixed overnight. Wall Street ended Tuesday with modest gains despite underlying volatility, as companies flagged weakening consumer sentiment and some technology stocks continued to feel pressure linked to the artificial-intelligence boom.
The S&P 500 edged up 0.1% after swinging between a 0.5% gain and nearly a 1% loss earlier in the session. The Dow Jones Industrial Average added 32 points, or 0.1%, while the Nasdaq composite also rose 0.1%.
Surveys have pointed to fragile US household confidence amid persistent inflation, a labor market recovering from weak growth and concerns over tariffs.
In Asia on Wednesday, Japan’s Nikkei climbed 0.29% to 56,734, while markets in South Korea, Hong Kong and mainland China remained closed for the Lunar New Year holiday.
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