Indonesia Stocks Jump 1.6% as Blue Chips, Earnings Offset BI Succession Concerns

JAKARTA, 31 JULY 2026 —

Indonesia’s benchmark Jakarta Composite Index climbed 94 points, or 1.56%, to 6,110 on Thursday as investors bought blue-chip shares during the corporate earnings season, brushing aside uncertainty over the central bank’s leadership transition.

Trading volume reached 26.61 billion shares worth Rp 12.58 trillion ($695.21 million) across 1.7 million transactions. Advancers outnumbered decliners 495 to 158, while 136 stocks ended unchanged. The index swung between 6,106 and 6,186 during the session.

Pilarmas Investindo Sekuritas said the advance came despite pressure from global markets and concern over the appointment of Bank Indonesia’s next governor. The rally was led by gains in large-cap stocks as traders positioned ahead of earnings releases.

Indonesia’s LQ45 index, which tracks the bourse’s 45 most liquid large-cap stocks, rose 1.66%, while the IDX30 climbed 1.75%.

The government has not named its nominee for Bank Indonesia governor. Under the Bank Indonesia Law, the president will submit one candidate to the House of Representatives for a fit-and-proper test before final appointment.

“We believe the emergence of several names as potential candidates shows the government has multiple options with strong experience in monetary policy and financial system stability,” Pilarmas said. “What matters more to market participants is not who is ultimately appointed, but that person’s commitment to preserving Bank Indonesia’s independence, maintaining the credibility of monetary policy, and consistently keeping inflation under control while safeguarding rupiah stability.”

The brokerage added that with global uncertainty and market volatility still elevated, investors would prefer a candidate with a strong central banking track record who can signal policy continuity. A prolonged selection process or doubts over future policy direction could increase short-term volatility in the rupiah and domestic financial markets, it said.

Regional equities were mostly weaker after the US Federal Reserve left interest rates unchanged and geopolitical tensions between Washington and Tehran intensified. The Fed held its benchmark rate at 3.5%-3.75%, reinforcing expectations that borrowing costs will remain higher for longer despite rising inflation risks tied to renewed conflict in the Middle East.

Three Federal Open Market Committee members dissented and supported a rate hike, while Fed Chair Kevin Warsh said the decision to leave rates steady should not be read as a shift toward less restrictive policy. Policymakers said they would continue to respond to incoming data.

Geopolitical risks also stayed in focus after reports that the US carried out airstrikes on Iranian targets following attacks on American forces in the region. Tehran reiterated its stance on controlling the Strait of Hormuz, complicating any near-term de-escalation.

Across Asia, South Korea’s Kospi fell 1.2%, Shanghai’s SSE slipped 0.7%, while Japan’s Nikkei rose 0.7% and Hong Kong’s Hang Seng edged up 0.2%.

Related: Federal Reserve · Jakarta