Jakarta. Indonesia’s benchmark stock index rose 0.64% over the week to 6,236.1 on July 31, extending gains as investors assessed solid corporate earnings, the outlook for US interest rates and uncertainty surrounding Bank Indonesia’s leadership.

The Jakarta Composite Index (JCI) climbed from 6,196.4 a week earlier, while the Indonesia Stock Exchange’s total market capitalization increased 0.48% to Rp10,923 trillion ($606.83 billion) from Rp10,870 trillion, according to exchange data.

Foreign investors recorded net selling of Rp250.58 billion on Friday, bringing their cumulative net sell for 2026 to Rp72.99 trillion.

Trading during July 27-31 was shaped by stronger-than-expected domestic corporate earnings, a wait-and-see approach ahead of the Federal Reserve’s monetary policy decision, uncertainty over the succession at Bank Indonesia, and volatility in energy prices amid geopolitical tensions.

Asian equities traded mixed during the week as renewed tensions between the US and Iran revived concerns over potential disruptions to global energy supplies. Iran fired ballistic missiles at US positions in the Middle East, while the US military said it intercepted what it described as a surprise Iranian attack targeting American forces in the region.

At the latest FOMC meeting concluded on July 29, the Federal Reserve voted to keep the federal funds rate unchanged at a target range of 3.50% to 3.75%

BI Leadership Uncertainty

Domestically, investors continued to monitor the fallout from the abrupt resignation of Bank Indonesia Governor Perry Warjiyo, which has drawn attention from global credit-rating firms Moody’s Ratings, Fitch Ratings and S&P Global Ratings.

The agencies have emphasized the importance of central-bank independence, monetary-policy credibility and policy consistency in maintaining investor confidence. The developments have encouraged a wait-and-see approach as markets await the appointment of a permanent governor.

S&P Global Ratings said Perry’s resignation does not directly affect Indonesia’s sovereign credit rating, but could add uncertainty to the country’s economic policy outlook.

S&P has also warned that downside risks to Indonesia’s sovereign rating could rise if fiscal or external pressures worsen or become structural. The agency, however, recently affirmed Indonesia’s rating with a stable outlook, reflecting expectations that those pressures will ease in coming months.

Corporate Earnings
A series of corporate earnings reports provided support for the domestic market during the week.

Bank Central Asia (BBCA) reported first-half net profit of Rp29.5 trillion, up 1.8% from a year earlier, while total loans reached Rp1,036 trillion.

Technology company GoTo Gojek Tokopedia (GOTO) swung to a positive net profit of Rp607.5 billion in the first half, supported by improved profitability and growth in core gross transaction value.

Bumi Resources' net income increased 87.4% to $72.3 million, while profit attributable to shareholders of the parent company jumped 188.4% to $58.9 million. 

Astra International (ASII), meanwhile, reported consolidated net profit of Rp12.53 trillion for the first half of 2026, down 19.22% from Rp15.51 trillion a year earlier.

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