Jakarta. Jakarta Composite Index (JCI) opened higher on Friday, rising 0.32% to 7,645, as markets reacted to a Middle East ceasefire deal and reaffirmed confidence in Indonesia’s fiscal outlook following its BBB stable rating.

JCI is moving within a narrow range of 7,637–7,655. Market activity picked up at the open, with 1.36 billion shares traded, amounting to Rp 542.12 billion ($31.55 million) across 103,005 transactions. Gainers outpaced decliners, with 288 stocks advancing, 142 falling, and 224 unchanged.

Global sentiment remained largely driven by geopolitical developments involving Iran, according to Kiwoom Sekuritas Indonesia. The firm noted that former US President Donald Trump signaled Iran was moving closer to a deal, raising the probability of an agreement without nuclear weapons, although no firm negotiation timeline has been set. The US and Iran have agreed in principle to continue talks, while a two-week temporary ceasefire is set to expire on April 21.

Separately, Israel and Lebanon agreed to a 10-day ceasefire, providing a near-term “risk-on” catalyst for global markets. However, conditions remain fragile. The US naval blockade of Iranian ports continues, with 14 ships reportedly turned back within 72 hours, alongside warnings that inspections could escalate to the use of force if violations occur.

On the domestic front, Finance Minister Purbaya Yudhi Sadewa said during a US investor roadshow that S&P Global Ratings had maintained Indonesia’s sovereign rating at BBB with a stable outlook. The assessment reflects sustained fiscal strength, supported by over 30% year-on-year tax revenue growth in early 2026 and improving economic activity.

Purbaya added that Indonesia continues to maintain discipline in keeping the budget deficit below 3% of GDP while managing its debt profile. In meetings with the IMF, he emphasized that the country does not require external assistance, citing a strong fiscal buffer in the form of a Rp 420 trillion excess budget balance (SAL), even as global uncertainty remains elevated.

He also told global investors that policy adjustments since late 2025 aim to preserve balanced growth and fiscal discipline, with economic growth targeted at around 5.5% in the first half of 2026 to sustain market confidence.

Foreign investor appetite remains visible, with inflows into the bond market reaching $136.6 million weekly and $399.3 million monthly. Demand for government bonds also strengthened, with SUN auction bids rising 34% to Rp 78.44 trillion alongside declining yields, although demand remains concentrated in liquid medium-term tenors.

Still, external risks persist. Purbaya warned that escalating Middle East tensions could widen the current account deficit, increase energy subsidy burdens, and push up inflation and interest rates.

Kiwoom added that domestic pressures are also building, pointing to rising government debt of $215.9 billion, equivalent to 29.8% of GDP, and a weaker rupiah above Rp 17,000 per dollar, which has increased the debt burden by roughly 6.25%. However, foreign exchange reserves of $148.3 billion continue to serve as a key stabilizing factor.

On Wall Street, US equities extended gains overnight, with the S&P 500 rising 0.3% to a fresh record high, marking its 11th advance in 12 sessions. The Dow Jones Industrial Average added 115 points, or 0.2%, while the Nasdaq Composite climbed 0.4%.

Asian markets, however, traded lower in early Friday sessions. Japan’s Nikkei fell 0.88% to 58,989, South Korea’s Kospi declined 0.32% to 6,206, Hong Kong’s Hang Seng dropped 0.87% to 26,164, and China’s Shanghai Composite slipped 0.33% to 4,042.

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