Indonesian stocks close 1.4% higher as inflation holds, traders await GDP print

JAKARTA, 6 AUGUST 2026 —

Indonesian equities jumped 1.4% on Tuesday, with the Jakarta Composite Index rising 85 points, or 1.37%, to 6,319, as investors cheered contained inflation, a narrower trade gap and stronger Asian markets.

The benchmark index traded between 6,238 and 6,319, with turnover of Rp 12.9 trillion ($715.59 million) across 33.4 billion shares in more than 2.12 million transactions. Advancers outnumbered decliners 399 to 224, while 170 stocks were unchanged.

The advance echoed gains across regional equities after Wall Street climbed on stronger-than-expected US manufacturing data, Pilarmas Investindo Sekuritas said. The US ISM Manufacturing Index rose to 55.6 from 53.3, its fastest expansion in more than four years.

“The data points to firmer demand and production, which should help support the US labour market,” Pilarmas said in a Tuesday note.

Risk sentiment also improved after reports of progress in Iran-Oman talks aimed at securing the Strait of Hormuz, easing concerns over energy-supply disruptions.

Domestically, investor confidence was underpinned by contained inflation. Annual inflation held at 2.88% in July 2026, Pilarmas said, remaining within Bank Indonesia’s 2.5% ±1% target band.

“The reading reflects consistent monetary policy and close coordination between the government and Bank Indonesia,” the brokerage said.

Indonesia’s external position also showed improvement. The trade deficit narrowed to $450 million in June from $1.61 billion in May. On a cumulative basis, the shortfall shrank to $450 million from $3.58 billion in the prior period.

The Jakarta market is now focused on Wednesday’s second-quarter 2026 GDP release, Pilarmas said.

Ahead of the print, the University of Indonesia’s Institute for Economic and Social Research (LPEM) expects Southeast Asia’s largest economy to grow around 5% this year, within a 4.95% to 5.05% range.

The forecast aligns with projections from the International Monetary Fund and the World Bank, both at 5%, and S&P Global Ratings at 5.1%. It falls short of the government’s 5.4% target and Bank Indonesia’s 4.9% to 5.7% range.

Across Asia, Japan’s Nikkei 225 rose 0.3%, South Korea’s Kospi advanced 1.6% and China’s Shanghai Composite added 0.3%. Hong Kong’s Hang Seng slipped 0.6%.

On Wall Street, the S&P 500 climbed 1.5% to 7,600.50, the Nasdaq Composite surged 2.1% to 25,913.90 and the Dow Jones Industrial Average rose 1.3% to 53,178.41, marking its highest close since July 6.

Related: Bank Indonesia · Jakarta