JCI Falls 1.48% as Investors Weigh Risks Ahead of August 27 Protest
JCI falls 1.48% as investors monitor domestic security risks ahead of a planned August 27 protest outside the Parliament complex in Jakarta.
On Wednesday, the Indonesia's Jakarta Composite Index (JCI) experienced a decline of 1.48 percent, reaching 6,405.69 points. This downturn was attributed to investors' cautious approach towards potential domestic security risks, especially in the lead-up to a planned protest at the House of Representatives complex in Jakarta. The LQ45 index, which tracks 45 highly capitalized stocks, similarly decreased by 1.46 percent to 632.55.
Industry analyst Maximilianus Nico Demus highlighted the market's focus on national security stability and macroeconomic fundamentals, anticipating peaceful demonstrations to maintain domestic security.
Investors were particularly vigilant of a protest scheduled for August 27 outside the House of Representatives (DPR) and People's Consultative Assembly (MPR) complex. The protesters seek passage of an Asset Forfeiture Bill. Meanwhile, Fitch Ratings cautioned that Indonesia's 6 percent economic growth assumption for 2027 was more feasible than initially thought. However, potential risks such as geopolitical uncertainty, higher oil prices, and fiscal mismanagement could affect the growth target.
Another focus was the confirmation hearing for Indonesia's next Bank Indonesia governor, with Destry Damayanti as the government's sole nominee. Market participants awaited his perspective on monetary policy, inflation control, rupiah exchange-rate stability, and strategies to maintain foreign capital inflows.
Looking globally, Asian stocks mostly gained due to progress in Middle East talks, easing concerns over potential energy supply disruptions. Iran and Oman discussed a temporary transit corridor through the Strait of Hormuz, along with a project to clear mines from the waterway. This development contributed to lower oil prices and reduced inflation pressures.
Investors also monitored China's National People's Congress Standing Committee meeting, which took place from August 25 to 28. The session was scrutinized for policy support following weak economic data and pledges to boost growth.
The JCI opened higher but closed in the red, with all 11 sectoral indexes tracked by the IDX-IC declining. The transportation and logistics sector saw the steepest drop, falling 4.04 percent, while the energy and property sectors experienced declines of 2.40 percent and 2.35 percent, respectively. Among the stocks with significant gains were TMPO, NICE, SAFE, BIKE, and JAST, while PADA, PSKT, TAMA, FUTR, and PIA posted the largest declines.
Trading volume reached 40.15 billion shares, valued at Rp18.06 trillion, with 136 stocks gaining, 599 declining, and 228 remaining unchanged.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
