Jakarta. Indonesian equities edged higher at Thursday’s open as investors rotated back into earnings-driven trades, brushing aside unresolved Middle East tensions even as risks to global energy flows linger.

Jakarta Composite Index (JCI) rose 23 points, or 0.30%, to move within the 7,557–7,582 range in early trade, supported by improving risk appetite.

Within minutes of the opening bell, volume reached 2.7 billion shares with turnover of Rp 1 trillion ($58 million) across more than 167,000 transactions. Gainers outpaced losers 304 to 176, with 213 stocks unchanged.

Kiwoom Sekuritas Indonesia said global sentiment has begun shifting away from geopolitical dominance toward corporate earnings after US President Donald Trump extended a ceasefire with Iran indefinitely despite stalled negotiations.

The move offered only limited relief, as it remains unilateral and lacks firm commitments from either Iran or Israel. Tehran has also declined to join new talks, though it continues to leave room for dialogue.

“The market has begun to see conflict risks as largely priced-in since the March sell-off, supported by strong earnings and economic data that were more solid than expected,” Kiwoom said.

On the ground, however, tensions remain elevated. Iran has attacked and seized several ships in the Strait of Hormuz, while a US Navy blockade of Iranian ports continues,  a move Tehran has described as an act of war.

“This condition keeps energy supply disruptions significant, with more than 10 million barrels per day affected and hundreds of millions of barrels held up for over 50 days,” Kiwoom added.

On Wall Street, major indexes climbed to fresh records overnight as strong corporate earnings lifted sentiment. The S&P 500 rose 1% to surpass its previous all-time high, while the Dow Jones Industrial Average gained 340 points, or 0.7%. The Nasdaq Composite jumped 1.6%, also hitting a record.

Still, caution persists, with oil prices rising amid uncertainty over how the Iran conflict will evolve.

Kiwoom described current market conditions as an “investor fatigue” phase, where attention to geopolitical risks is fading even though underlying threats remain.

“Risk appetite is increasing again amid hopes that the peak of escalation has passed, but the next direction remains highly dependent on clarity in peace negotiations and the reopening of global energy routes,” it said.

Separately, Phintraco Sekuritas noted that Bank Indonesia maintained its benchmark interest rate at 4.75%, with the deposit facility rate at 3.75% and the lending facility rate at 5.5%, in line with efforts to stabilize the rupiah amid persistent global uncertainty.

The central bank expects inflation to remain within its 2026–2027 target range of 2.5% ±1% and projects economic growth at 4.9%–5.7% in 2026.

Phintraco added that banks still hold Rp 2,527.46 trillion in undisbursed loan facilities, equivalent to 22.59% of total available credit. Bank Indonesia expects credit growth to remain stable at 8%–12% in 2026.

Kiwoom also highlighted that Fitch Ratings maintained the BBB ratings of four major Indonesian banks, BBCA, BBRI, BMRI, and BBNI,  with a negative outlook, reflecting macroeconomic and sovereign risks despite strong fundamentals in capitalization, liquidity, and asset quality.

“Valuations of large banks are already relatively cheap amid foreign selling, opening opportunities for accumulation, while remaining mindful of rupiah and liquidity risks,” it added.

Across the region, Asian markets were mixed as of 8:51 a.m. Jakarta time. Japan’s Nikkei 225 fell 0.38%, South Korea’s Kospi rose 1.63%, Hong Kong’s Hang Seng dropped 0.78%, and China’s Shanghai Composite edged up 0.09%.

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