Jakarta. Indonesian stocks surged on Thursday, with the Jakarta Composite Index (JCI) climbing 107 points, or 1.68%, to close at 6,501 as rallies across Asian markets and Bank Indonesia’s decision to hold interest rates lifted sentiment.

The index moved between 6,444 and 6,514 during the session. Trading volume reached 78.68 billion shares, with a turnover of Rp 15.79 trillion ($889.02 million) across more than 2.28 million transactions. Some 452 stocks gained, while 190 declined and 150 were unchanged.

Pilarmas Investindo Sekuritas said the JCI's gains tracked the positive performance of Asian equities and Wall Street, as investors largely brushed aside the latest Federal Reserve meeting minutes, which showed that some officials had begun to support higher interest rates.

Instead, investors focused on falling US Treasury yields, which encouraged them to increase exposure to riskier assets.

“The market is of the view that lower US Treasury yields have helped restore risk appetite,” Pilarmas wrote in its Thursday research note.

The decline in yields came after the US government announced plans to ease pressure from recent turmoil in the bond market. The US Treasury significantly increased its debt buyback operations, easing concerns over rising borrowing costs that had weighed on global equity markets, according to Pilarmas.

On the domestic front, investors were also digesting Bank Indonesia’s decision to keep its benchmark interest rate unchanged at 5.75%.

According to Pilarmas, the central bank maintained its policy stance to safeguard the rupiah amid heightened global volatility stemming from the Middle East conflict.

Bank Indonesia also kept its inflation target at 1.5%-3.5% for 2026 and 2027 while maintaining its commitment to supporting sustainable economic growth.

Acting Bank Indonesia Governor Destry Damayanti has said monetary policy would continue to focus on exchange-rate stability. The central bank will also expand its hedging incentive scheme to attract more capital inflows.

“Bank Indonesia will continue to intervene in both domestic and offshore markets and provide incentives to encourage foreign fund inflows,” Pilarmas said.

“Macroprudential measures will also be used to ensure adequate banking liquidity to support credit distribution,” it added.

In China, the central bank also kept its benchmark Loan Prime Rates unchanged, with the one-year LPR remaining at 3% and the five-year rate at 3.5%.

Pilarmas said the decision reflected Beijing's cautious stance amid persistent uncertainty in both the domestic and global economy, while remaining consistent with its commitment to maintaining an accommodative monetary policy.

Expectations for additional stimulus have strengthened after China's July economic data pointed to further weakness. Investors are now awaiting the Standing Committee of the National People's Congress meeting on Aug. 25-28 for further signals on the direction of economic policy, Pilarmas said.

Across Asia, South Korea's Kospi surged 5.9%, recovering after plunging 5.8% on Wednesday amid renewed selling in artificial intelligence-related shares. Japan's Nikkei gained 1.4%, while Hong Kong's Hang Seng rose 1.2% and Shanghai's Composite Index added 0.2%.

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