Jakarta. Indonesia’s benchmark stock index posted a modest weekly gain as stronger trading activity and foreign inflows offset concerns over geopolitical tensions in the Middle East and weakening domestic economic indicators.

The Jakarta Composite Index (JCI) rose 0.18% over the May 4–8 trading week to close at 6,969.396, from 6,956.804 a week earlier. Market capitalization on the Indonesia Stock Exchange (IDX) edged up 0.19% to Rp12,406 trillion ($715 billion), while average daily transaction value climbed 26.14% to Rp23.06 trillion, exchange data showed.

Trading activity strengthened across the board, with average daily trading volume surging 23.57% to 45.86 billion shares and transaction frequency rising 9% to 2.55 million trades per day.

Foreign investors recorded net purchases of Rp11.42 trillion on Friday, although overseas investors still posted cumulative net sales of Rp37.61 trillion for 2026, reflecting lingering caution toward Indonesian assets amid global uncertainty.

Investor sentiment weakened toward the end of the week after reports that three US Navy destroyers crossed the Strait of Hormuz, intercepted Iranian attacks and launched retaliatory strikes, according to Pilarmas Investindo Sekuritas.

“The situation has once again raised concerns over geopolitical risks in the Middle East, despite US President Donald Trump stating that the ceasefire remains in effect,” the brokerage said in a Friday note.

Markets were also monitoring a planned meeting between Trump and Chinese President Xi Jinping in Beijing on May 14–15, although uncertainty remained after reports that some Chinese officials were reluctant to proceed with talks until tensions between Washington and Tehran eased further.

According to Kiwoom Sekuritas Indonesia, investors remain focused on negotiations between the US and Iran over a proposed 14-point framework aimed at reviving permanent talks next week in Pakistan. Discussions are expected to include nuclear issues, sanctions relief and reopening access through the Strait of Hormuz.

However, uranium enrichment and nuclear inspection mechanisms remain major sticking points. Trump has warned of broader military action if negotiations fail, while Iranian officials have yet to formally accept the proposal.

On the domestic front, Indonesia’s foreign exchange reserves fell to $146.2 billion in April as the rupiah weakened, reinforcing expectations that Bank Indonesia may maintain a cautious policy stance.

Phintraco Sekuritas said investors were also watching signs of slowing domestic demand. The brokerage projected Indonesia’s residential property price index growth slowed to 0.5% year-on-year in the first quarter from 0.83% in the previous quarter.

Meanwhile, April car sales are expected to contract 7% from a year earlier after plunging 13.8% in March, highlighting persistent weakness in consumer spending despite resilient equity market activity.

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