Jakarta. Indonesia’s benchmark stock index eked out modest gains on Thursday as tens of thousands of workers staged mass protests in Jakarta and other industrial hubs, adding a layer of uncertainty to local markets.

The Jakarta Composite Index (JCI) opened at 7,951.86 and climbed 32.70 points, or 0.41 percent, to 7,968.88 by 9:05 a.m., according to RTI data. Analysts cautioned that ongoing social unrest could constrain further gains.

“Market participants are closely monitoring the national labor protests, which are expected to flood Jakarta and may trigger similar demonstrations in other regions,” Kiwoom Securities wrote in a Thursday research note.

The firm suggested that the JCI may struggle near the psychological resistance level of 8,000, particularly as the rupiah trades weaker at Rp 16,393 per US dollar. 

Phintraco Securities similarly forecast a consolidation range of 7,850–7,970 for the JCI, citing ongoing anticipation of key US economic data, including the second-quarter GDP revision, weekly jobless claims, core PCE inflation, and July pending home sales.

Tens of thousands of Indonesian workers, organized by the Indonesian Trade Union Confederation (KSPI) and the Labor Party, began mobilizing Thursday morning from satellite cities such as Cikarang, Cikupa, Bogor, and Depok. Demonstrators are converging on the House of Representatives (DPR) and the Presidential Palace in Jakarta, while simultaneous rallies are taking place in Surabaya, Bandung, Medan, Batam, and Makassar.

Workers are pressing for higher wages, an end to outsourcing, the establishment of a task force to prevent mass layoffs, labor tax reforms, the passage of labor legislation outside the controversial Omnibus Law framework, approval of an asset confiscation bill, and revisions to election laws ahead of the 2029 general election.

Earlier in the week, protests outside the DPR turned chaotic, with police deploying tear gas and water cannons to disperse crowds, detaining 312 protesters, including 205 minors. The JCI was unaffected by the protest, posting a  0.87 percent gain on Monday.

US equities also advanced on Thursday, with the S&P 500 up 15.46 points at 6,481.40, the Dow Jones Industrial Average rising 147.16 points to 45,565.23, and the Nasdaq climbing 45.87 points to 21,590.14.

Markets have been subdued amid political turbulence in Washington, where former President Donald Trump escalated tensions with the Federal Reserve by attempting to remove Governor Lisa Cook. Investors remain focused on expectations that the Fed will cut interest rates at its September meeting, with a 90.3 percent probability priced in for a 25-basis-point reduction, according to CME Group data.

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