Jakarta. The Jakarta Composite Index (JCI) inched up 0.48 percent to close at 7,195.57 during the week of Nov. 18-22, compared to more robust performance in the US, where the S&P 500 gained 1.7 percent, erasing most of its losses from the prior week. While Wall Street celebrated its fifth consecutive week of gains, the JCI remains under pressure from persistent foreign outflows.

Market capitalization on the Indonesia Stock Exchange (IDX) fell slightly, dropping 0.08 percent to Rp 12,053 trillion from Rp 12,063 trillion the previous week. According to NH Korindo Sekuritas Indonesia (NHKSI), the JCI struggles to breach resistance at 7,220, hindered by a year-to-date foreign net sell position of Rp 18.51 trillion and a weakening rupiah nearing Rp 16,000 per US dollar.

“Stronger catalysts are needed to overcome current resistance levels, particularly as foreign investors continue to pull funds from the market,” NHKSI stated in its research.

Despite the challenges, Indonesia’s macroeconomic fundamentals showed improvement. The country posted a $5.9 billion surplus in its Q3 balance of payments, rebounding from a $0.6 billion deficit in Q2. The surplus was driven by robust capital inflows and higher non-oil and gas exports, supported by rising commodity prices and stronger domestic economic activity.

The current account deficit narrowed to $2.2 billion (0.6 percent of GDP) in Q3 from $3.2 billion (0.9 percent of GDP) in Q2. Foreign exchange reserves also rose to $149.9 billion by the end of September, up from $140.2 billion in June.

Bank Indonesia maintained its benchmark interest rate at 6 percent this week, with a deposit facility rate of 5.25 percent and a lending facility rate of 6.75 percent. The central bank reiterated its focus on keeping inflation within its 2.5 percent target range while supporting sustainable growth.

Meanwhile, President Prabowo Subianto unveiled plans to accelerate Indonesia’s net-zero emissions target to 2050, a decade earlier than his predecessor's goal. Speaking at the G20 summit in Rio de Janeiro on Wednesday, Prabowo cited Indonesia's vast renewable energy resources as key to achieving the ambitious timeline.

Global markets, however, were buoyed by optimism in the US. The Dow Jones Industrial Average climbed 1 percent to another record high, while the Nasdaq Composite rose 0.2 percent. Investors are now eyeing the upcoming release of the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred inflation gauge, ahead of its December meeting.

In contrast to Jakarta’s equities, Bitcoin surged to a record high of $99,000, boosted by investor hopes that the US will introduce crypto-friendly regulations under the new administration. The cryptocurrency has gained over 40 percent in two weeks on the back of renewed speculative enthusiasm.

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