Indonesian stocks open higher on rate expectations and PFII optimism
The Jakarta Composite Index jumped 26 points, or 0.41%, to 6,366 on Wednesday, as investors priced in a likely 25-basis-point hike in Bank Indonesia’s benchmark rate and welcomed the new International Financial Center…
Source: The Jakarta Globe · July 22, 2026 at 10:02 PM · AI-assisted report
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INDONESIA, 23 JULY 2026 —
The Jakarta Composite Index jumped 26 points, or 0.41%, to 6,366 on Wednesday, as investors priced in a likely 25-basis-point hike in Bank Indonesia’s benchmark rate and welcomed the new International Financial Center (PFII) law.
The benchmark moved within a 6,360–6,394 range in the first five minutes of trading. Trading volume reached 3.6 billion shares worth Rp 1.5 trillion ($83.77 million) across 253,000 transactions. Advancers led decliners 310 to 170, with 216 issues unchanged.
Consensus forecasts point to a 25-basis-point increase in the BI Rate to 6% when the central bank concludes its two-day policy meeting, according to Phintraco Sekuritas. The brokerage also noted that June bank lending data, due later on Wednesday, is expected to show credit growth slowing to 9% year-on-year from 11.51% in May.
Phintraco said the Finance Ministry and the Financial System Stability Committee (KSSK) have prepared a package of fiscal and market measures aimed at safeguarding economic stability in the second half of 2026. The measures include optimizing government fund placements in commercial banks to support domestic banking liquidity. Transportation discounts and import incentives are meant to lower operating costs for manufacturers and trading companies.
The government also plans to stabilize fuel and key food prices to preserve household purchasing power, Phintraco added.
In a separate announcement, the brokerage said the government intends to issue $1 billion of yuan-denominated Panda Bonds on July 23 to diversify funding sources. The bonds carry a AAA/Stable rating from Lianhe Credit Rating.
“This reflects the government’s effort to diversify its sources of financing,” Phintraco Sekuritas said.
The brokerage highlighted the House of Representatives’ approval of the International Financial Center (PFII) bill into law, saying the legislation could strengthen foreign capital inflows.
“The enactment of this law is expected to open new financing sources for the government while attracting capital inflows,” Phintraco Sekuritas said.
Across Asia at 9:13 a.m. Jakarta time, Japan’s Nikkei gained 1.93%, South Korea’s Kospi surged 5.97%, Shanghai’s SSE Composite added 0.34%, while Hong Kong’s Hang Seng slipped 0.55%.
On Wall Street, the S&P 500 climbed 0.9%, the Dow Jones Industrial Average advanced 385 points or 0.7%, and the Nasdaq Composite rose 1.3%.
Related: Bank Indonesia · Indonesia
Malaysia Impact
The growth of the Indonesian economy is likely to have a positive impact on the regional economy, particularly in Malaysia, which is a key trading partner. This could lead to increased trade and investment between the two countries, potentially boosting the Malaysian economy.