Jakarta. Jakarta Composite Index (JCI) rose by 48 points, or 0.76%, moving within the 6,289-6,378 range. Trading volume reached 3.6 billion shares with turnover totaling Rp 1.98 trillion ($112 million) across more than 236,000 transactions. Decliners slightly outpaced gainers, with 279 stocks falling, 257 advancing, and 165 unchanged.

Phintraco Sekuritas said stronger gains on Wall Street, a firmer rupiah following Bank Indonesia’s surprise rate hike, and higher commodity prices were expected to support market sentiment. However, the brokerage warned that ongoing portfolio adjustments related to stocks exiting the MSCI index could continue to pressure the JCI.

President Prabowo Subianto outlined a 2027 state budget deficit target of between 1.8% and 2.4% of gross domestic product.

The government’s macroeconomic assumptions for the 2027 state budget include economic growth of 5.8%-6.5%, inflation of 1.5%-3.5%, the rupiah exchange rate at Rp 16,800-17,500 per US dollar, and the 10-year government bond yield in the 6.5%-7.3% range.

Phintraco Sekuritas also highlighted the government’s plan to mandate exports of natural resource commodities through state-owned enterprises appointed as sole exporters. The policy will initially apply to crude palm oil, coal, and ferroalloy products.

“Investors are likely to remain in a wait-and-see mode in responding to the 2027 state budget assumptions and the new natural resource export policy,” Phintraco Sekuritas said.

Bank Indonesia raised its benchmark BI Rate by 50 basis points to 5.25% at its May policy meeting, exceeding market expectations of a 25-basis-point increase to 5%.

Phintraco Sekuritas said the move marked the central bank’s first rate hike since April 2024 and was aimed at strengthening rupiah stability, containing inflation risks, and keeping inflation within the government’s target range.

“However, the impact of the BI Rate hike on the rupiah’s movement still needs to be monitored further, while its negative effects on the property sector and highly leveraged companies should also be watched closely,” the brokerage said.

Meanwhile, Indonesia’s credit growth accelerated to 9.98% year-on-year in April 2026 from 9.49% in March.

Global sentiment also improved overnight after Wall Street rebounded as oil prices and US Treasury yields retreated amid growing optimism that tensions in the Middle East could ease soon.

US benchmark West Texas Intermediate crude plunged 5.66% to $98.26 per barrel, while Brent crude fell 5.63% to $105.02 per barrel after former US President Donald Trump said negotiations with Iran had reached the final stage.

US Treasury yields also declined, with yields on 10-year and 30-year government bonds falling by more than 9 basis points and 6 basis points, respectively.

The S&P 500 climbed 1.1% on Wednesday for its first gain in four sessions, moving closer to the record high it reached last week. The Dow Jones Industrial Average jumped 645 points, or 1.3%, while the Nasdaq Composite rallied 1.5%.

Across Asia, regional markets traded higher as of 9:14 a.m. Jakarta time. Japan’s Nikkei 225 surged 3.46%, South Korea’s KOSPI jumped 6.22%, Hong Kong’s Hang Seng Index gained 0.65%, and China’s Shanghai Composite rose 0.65%.

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