JCI Rebounds on ADB’s 5.2% Indonesia Growth Forecast
Jakarta. Jakarta Composite Index (JCI) rebounded 0.67% on Thursday, supported by the Asian Development Bank's forecast that Indonesia's economy will grow 5.2% in both 2026 and 2027 despite escalating tensions in the Middle East.
The benchmark index added 39 points to close at 5,912 after trading between 5,839 and 5,912. Trading volume reached 26.8 billion shares, with turnover totaling Rp 11.48 trillion ($634.23 million) across more than 2.2 million transactions. A total of 327 stocks advanced, 275 declined, and 190 were unchanged.
Pilarmas Investindo Sekuritas said the JCI's gain came as Asian markets traded mixed following heightened geopolitical tensions after the US military confirmed attacks on Iran for a second consecutive day.
Iran, meanwhile, threatened to launch large-scale retaliatory operations against US military bases across the Middle East. The escalating conflict pushed global oil prices higher and fueled concerns over a potential surge in inflation.
"The latest hostilities in the Middle East have pushed oil prices higher, raising inflation concerns and strengthening expectations that global interest rates could remain elevated for longer," Pilarmas said in a research note on Thursday.
Pilarmas added that minutes from the Federal Reserve's June meeting showed that only a small number of officials supported further interest rate hikes. However, US policymakers continued to closely monitor growing inflation risks.
Markets currently expect at least one Fed rate hike before the end of 2026. Investors are also awaiting US weekly jobless claims and home sales data for fresh clues on the direction of monetary policy.
Domestically, Pilarmas said positive sentiment came from the Asian Development Bank's projection that Indonesia's economy would maintain steady growth of 5.2% in both 2026 and 2027.
According to the brokerage, the forecast underscores the resilience of Indonesia's economy amid slowing global growth and geopolitical uncertainty.
"The ADB forecast indicates that Indonesia's economy remains capable of maintaining stable growth amid challenging global conditions," Pilarmas said.
Elsewhere in Asia, markets were mixed on Thursday as Iran and the US launched fresh attacks.
Tokyo's Nikkei 225 reversed some of its losses earlier in the week, rising 1.4% to 67,743, supported by gains in technology-related shares.
South Korea's Kospi fluctuated before gaining 0.6% to 7,291, following a 5.4% plunge on Wednesday.
The Shanghai Composite climbed 1.7% to 4,036, even as China's producer price index rose 4.1% year-on-year in June, accelerating from 3.9% in May. Some economists attributed the faster inflation to higher costs stemming from the Iran war.
Hong Kong's Hang Seng fell 0.7% to 24,027.
On Wall Street, the benchmark S&P 500 closed 0.3% lower at 7,482 on Wednesday, having fallen as much as 1.1% following US President Donald Trump's comments on the ceasefire agreement.
The Dow Jones Industrial Average dropped 1.1% to 52,348, while the technology-heavy Nasdaq Composite edged up 0.2% to 25,870 after earlier losses.
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