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Manufacturing Recovery Fuels JCI's 1.11% Gain

Ria Fortuna Wijaya, Associated Press
June 2, 2026 | 4:04 pm
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Investor monitors stock market movements at the IDX building in Jakarta. (B-Universe Photo/David Gita Roza)
Investor monitors stock market movements at the IDX building in Jakarta. (B-Universe Photo/David Gita Roza)

Jakarta. Jakarta Composite Index (JCI) closed higher on Tuesday, gaining 68 points, or 1.11%, to 6,195, as improving domestic economic indicators outweighed concerns over geopolitical tensions and weaker regional markets.

The benchmark index traded between 6,143 and 6,264 during the session. Trading volume reached 31.1 billion shares, with turnover totaling Rp 25.37 trillion ($1.42 billion) across more than 2.5 million transactions. Declining stocks outnumbered gainers, with 389 shares falling, 281 advancing, and 147 remaining unchanged.

Pilarmas Investindo Sekuritas said the market's advance to signs of improvement in Indonesia's economy.

Indonesia's manufacturing activity returned to expansion territory in May. Data from S&P Global showed the Manufacturing Purchasing Managers' Index (PMI) rose to 50.0 in May 2026 from 49.1 in April.

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"The increase was supported by stronger domestic new orders, which reached their highest level since February 2026," Pilarmas wrote in a research note.

Investor sentiment was also supported by controlled inflation. Data from the Central Statistics Agency (BPS) showed consumer prices rose 0.28% month-on-month and 3.08% year-on-year in May, remaining within Bank Indonesia's target range of 2.5% ±1%.

On the external front, Indonesia recorded a trade surplus of $90 million in April, although the figure was lower than the previous month. Exports stood at $25.40 billion, while imports reached $25.31 billion.

"These indicators were the main factors allowing the JCI to move against the broader trend in Asian markets, which generally weakened," Pilarmas said.

Despite the domestic optimism, the brokerage noted that global markets remained cautious amid escalating tensions in the Middle East, which could trigger volatility in oil prices.

Uncertainty increased after reports emerged that Iran had suspended talks with the United States, although US President Donald Trump said negotiations were still ongoing.

"Markets remain cautious over geopolitical developments that have yet to show any clear resolution, particularly regarding US-Iran relations and broader tensions in the Middle East," Pilarmas said.

The brokerage added that investors were also monitoring differing statements from Trump and Israeli Prime Minister Benjamin Netanyahu regarding the conflict in Lebanon, further adding to global uncertainty.

Most Asian markets ended lower on Tuesday as renewed fighting threatened the US-Iran ceasefire. Japan's Nikkei 225 fell 0.3% to 66,734, while South Korea's Kospi slipped 0.2% to 8,772.

Hong Kong's Hang Seng bucked the trend, rising 2.2% to 25,956, while China's Shanghai Composite added 0.4% to 4,075.

On Wall Street, US stocks extended their record-setting run overnight. The S&P 500 gained 0.3% to 7,599.96, the Dow Jones Industrial Average rose 0.1% to 51,078, and the Nasdaq Composite advanced 0.4% to 27,086.

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