JCI Inches Higher as Investors Assess P2SK Reform, Danantara Bonds
Jakarta. Jakarta Composite Index (JCI) gained 7 points, or 0.11%, to 5,846 in early trading, moving within a range of 5,795 to 5,860.
As of 10 minutes into the session, RTI data showed trading volume had reached 3.4 billion shares, with turnover of Rp 2.9 trillion ($160.8 million) from more than 266,000 transactions. Advancers outnumbered decliners by 270 to 281, while 166 stocks were unchanged.
Phintraco Sekuritas said the House of Representatives had passed amendments to Law No. 4/2023 on Financial Sector Development and Strengthening (P2SK), marking the continuation of Indonesia's broader financial-sector reform agenda.
"The law strengthens the mandate of the Financial Services Authority (OJK) and capital market regulations, including plans for the demutualization of the Indonesia Stock Exchange and measures to improve transaction integrity," Phintraco Sekuritas said.
The brokerage expects the new framework to support higher market liquidity through an expanded role for banks in the capital market, stronger financial institutions, and a wider range of financial and capital-market products.
"Transparency and governance standards will be tightened, while investor protection is expected to become stronger," it said.
Phintraco also noted that the revised P2SK Law provides a legal basis for the Daya Anagata Nusantara Investment Management Agency, or Danantara, to issue special debt instruments known as Patriot Bonds and Merah Putih Bonds.
"The bond issuances are intended to broaden long-term funding sources for strategic national projects while strengthening Danantara's investment capacity," the brokerage said.
In addition, Danantara is planning to issue up to $5 billion in global bonds. Moody's has assigned the proposed notes a Baa rating with a negative outlook.
"Danantara's debt issuance is expected to deepen Indonesia's capital structure and help finance development programs without adding pressure to the state budget," Phintraco said.
Global sentiment was supported by gains on Wall Street overnight. US stocks rallied on Thursday as lower oil prices and declining bond yields eased pressure on equities. Financial stocks, small-cap companies and other sectors that had lagged the artificial intelligence-driven rally led the advance.
The S&P 500 rose 0.4% for its 10th gain in 11 sessions, while the Dow Jones Industrial Average jumped 874 points, or 1.7%, to a record high. The Nasdaq Composite slipped 0.1%.
Brent crude fell 2.8% to $95.03 per barrel, reversing part of its recent surge triggered by renewed tensions involving Iran, the United States and its allies. Investors appear to be betting that the Strait of Hormuz will remain open to oil shipments, helping stabilize crude supplies and ease inflation concerns.
In Asia, markets traded mostly lower on Friday morning. As of 8:49 a.m. Jakarta time, Japan's Nikkei 225 had fallen 1.96%, while South Korea's Kospi dropped 6.21%, with heavyweight technology stocks leading losses. Hong Kong's Hang Seng slipped 0.42%, and China's Shanghai Composite declined 0.30%.
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