Jakarta. Jakarta stocks staged a strong rebound on Friday, with the benchmark, Jakarta Composite Index (JCI) reclaiming the 6,000 mark as easing geopolitical tensions in the Middle East, falling oil prices, and improved risk appetite across Asia fueled broad-based buying.

JCI climbed 2.07% or 121 points on Friday to close at 6,007, returning above the psychologically important 6,000 level after trading between 5,952 and 6,074.

Market activity remained robust, with 36.2 billion shares changing hands worth Rp 21.3 trillion ($1.19 billion) across more than 2.3 million transactions. Advancers outnumbered decliners 615 to 108, while 93 stocks were unchanged.

Brokerage Pilarmas Investindo Sekuritas attributed the rally to gains across Asian markets after US President Donald Trump said a peace agreement with Iran could be signed as early as this weekend, raising hopes that tensions in the Middle East may soon ease.

"The statement sparked market optimism over declining geopolitical risks, which could lower oil prices and ease global inflation concerns," Pilarmas wrote in a research note.

Global equities advanced after Wall Street posted strong gains overnight, while oil prices fell sharply on expectations that a potential US-Iran agreement could help reopen the Strait of Hormuz, a critical route for global oil and gas shipments.

Brent crude, the international benchmark, dropped 4.5% to $86.31 per barrel, although it remained well above the roughly $70 level seen before the conflict began in late February.

Domestically, investors also welcomed the government's plan to recalculate funding needs for the Free Nutritious Meals (MBG) program. The Finance Ministry and the National Nutrition Agency (BGN) are reviewing the budget allocation as part of efforts to maintain fiscal credibility.

Pilarmas also highlighted the World Bank's June 2026 Indonesia Economic Prospects report, which forecasts Indonesia's economy to grow 5% this year, below the government's target in the 2026 state budget. The softer outlook reflects external pressures weighing on investment and exports.

However, growth is expected to accelerate to 5.2% in 2027-2028 as global conditions improve and structural reforms gain traction.

"Going forward, the challenge is ensuring growth is increasingly driven by investment and productivity. If global conditions improve and reforms are implemented effectively, growth could exceed the baseline projection," Pilarmas said.

The market was also monitoring student protests organized by the Student Executive Board (BEM), which called for lower government spending, reduced prices for basic goods and fuel, the termination of the MBG program and the Red-and-White Village Cooperative initiative, as well as reduced military involvement in civilian affairs.

"Market participants hope the demonstrations remain orderly and do not disrupt market stability," Pilarmas added.

Asian markets posted even stronger gains. South Korea's Kospi surged 4.6% to 8,123, recovering from earlier losses linked to artificial intelligence-related stocks. Samsung Electronics jumped 7.9%, while SK Hynix gained 2.3%.

Japan's Nikkei 225 rose 2.8% to 66,020, supported by technology shares. Hong Kong's Hang Seng advanced 1.7% to 24,658, while China's Shanghai Composite Index added 1.1% to 4,031.