Why JCI and Rupiah Strengthened After Prabowo's Address
The market responded positively to Prabowo's address, partly because it assessed the government's economic policy direction as increasingly clear.
The Jakarta Composite Index (JCI) experienced a 1.59 percent increase to 6,401.89 on Friday, August 14, 2026, following President Prabowo Subianto's state address and the unveiling of the 2027 Draft State Budget (RAPBN). Chief Economist Fakhrul Fulvian of Trimegah Sekuritas Indonesia stated that the market reaction demonstrated a clearer direction of Prabowo's economic policies.
The 2027 RAPBN targets an economic growth of 6 percent, surpassing the 5.4 percent target in the 2026 APBN. The government also set a deficit of 2.4 percent of GDP, which is lower than the 2.68 percent target in the 2026 APBN. Fakhrul emphasized that investors are not solely focused on the deficit figure, but also on how the government generates growth, attracts investment, and stimulates the private sector.
Prabowo's agendas, such as downstreaming, the Indonesia Financial Center, the Commodity Exchange, the Gold Bank, and capital market reform, aim to mobilize economic resources more effectively. These measures are seen as crucial for growth, although investors are still awaiting a comprehensive roadmap and concrete implementation of these policies.
The rupiah also strengthened against the US dollar, with the currency rising 0.28 percent to Rp17,827 per US dollar, up from Rp17,877. Analysts noted that the rupiah's strengthening was a positive market response to Prabowo's RAPBN speech, describing it as cautiously positive.
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