JCI Seen Moving Sideways as Geopolitical Risks Rise

RRI.CO.ID, Jakarta - The Jakarta Composite Index (JCI) is expected to fluctuate during Thursday’s trading session on August 20, 2026, at the Indonesia Stock Exchange (IDX). The index closed 0.86 percent lower at 6,394 on Wednesday, August 19.

“The JCI is expected to move within the 6,300–6,450 range today,” the Phintraco Sekuritas analyst team said on Thursday. They noted that investors remain concerned about escalating geopolitical tensions and their impact on global energy prices.

“These concerns are creating negative sentiment in the market,” the Phintraco team said. Market participants, they added, are also still digesting Bank Indonesia’s (BI) decision to maintain its benchmark interest rate at 5.75 percent for the second consecutive month.

“This decision aligns with BI’s efforts to strengthen rupiah stability, keep inflation within its target range, and support sustainable economic growth,” the team said.

BI also maintained its projection for Indonesia’s 2026 economic growth at between 4.9 percent and 5.7 percent year-on-year (yoy). Growth is expected to be supported by government stimulus programs and sustained confidence among economic actors.

Annual bank lending grew 13.58 percent in July 2026, up from 12.67 percent in June. According to Phintraco, this positive trend reflects BI’s accommodative macroprudential stance.

“BI continues to optimize the Macroprudential Liquidity Incentive Policy (KLM) to encourage higher bank lending, particularly to priority sectors,” the team said.

Foreign investors recorded net sales of IDR 488 billion (approximately USD 27.42 million) on Wednesday’s trading. The stocks most heavily sold were ASII, ANTM, AADI, BMRI, and ISAT. (Gusti Panji)