Indonesian stocks rise 0.54% as Wall Street rally offsets budget ruling

INDONESIA, 31 JULY 2026 —

Indonesia’s benchmark Jakarta Composite Index climbed 0.54% to 6,219 on Friday morning, tracking a sharp overnight rebound on Wall Street after Microsoft’s upbeat earnings eased growth concerns.

The advance followed gains of 1.7% in the S&P 500, 2.8% in the Nasdaq Composite and 1.2% in the Dow Jones Industrial Average after Microsoft posted stronger-than-expected quarterly results and maintained its 2026 capital expenditure plans. Trading volume reached 1.14 billion shares with turnover of Rp 450.12 billion.

Phintraco Sekuritas said the rise came despite lingering domestic uncertainty over the Constitutional Court’s partial ruling on the 2026 state budget, which requires separation of the Free Nutritious Meals program from the education budget by 2028 if spending is not core to education.

Gainers outnumbered losers 333 to 110, while 205 stocks were unchanged, according to exchange data at 9:26 a.m. Jakarta time. Kiwoom Sekuritas Indonesia cited the government’s new 40-year subsidised mortgage policy as a potential boost for the property sector, with borrowers able to choose tenors from 10 to 40 years.

Externally, Phintraco said lower US core PCE inflation and softer oil prices improved risk sentiment, while Kiwoom highlighted earnings from Amazon and Apple as the next catalyst for tech stocks. US core PCE rose just 0.1% month-on-month in June, below forecasts, though second-quarter GDP grew just 1.5%, missing expectations.

Across Asia at the same hour, Japan’s Nikkei gained 4.72%, South Korea’s Kospi surged 13.55% and China’s Shanghai Composite rose 0.82%, while Hong Kong’s Hang Seng slipped 0.51%.

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