Indonesia Stocks Rises as Political Risks Ease, Investors Eye Fed Speech

RRI.CO.ID, Jakarta - Indonesia’s benchmark stock index opened higher Friday, August 28, 2026, buoyed by easing domestic political and security risks, while investors awaited signals from the Federal Reserve’s Jackson Hole symposium.

The Jakarta Composite Index (IHSG) gained 13.97 points or 0.21 percent to 6,535.72 at Friday’s opening. The LQ45 index of blue‑chip stocks rose 1.99 points or 0.31 percent to 643.06.

Phintraco Sekuritas Head of Research Ratna Lim projected the IHSG would move sideways between 6,450–6,580 ahead of Fed Chair Kevin Warsh’s speech at Jackson Hole.

Domestic sentiment improved after political and security concerns eased. The House of Representatives (DPR) set a December 15 deadline to pass the Asset Confiscation Bill, while Commission XI approved Destry Damayanti as Bank Indonesia Governor for 2026–2031, replacing Perry Warjiyo. Aida S. Budiman was appointed Senior Deputy Governor.

“These developments are expected to reduce uncertainty over BI’s monetary policy and strengthen investor confidence,” Ratna said, as quoted by Antara.

Meanwhile, Danantara Indonesia allocated USD 1 billion to Swiss asset manager Partners Group for private credit investments, including USD 600 million in direct lending and USD 400 million for co‑investment.

Global cues also supported sentiment. Wall Street rallied on Nvidia’s strong quarterly results, underscoring AI’s role as a growth driver. Crude oil prices climbed amid Middle East tensions, while U.S. Treasury yields held steady ahead of Jackson Hole.

European markets closed mixed Thursday, with Germany’s DAX up 0.31 percent while France’s CAC 40 fell 1.68 percent. Asian markets opened higher Friday, led by Japan’s Nikkei, up 0.75 percent. ***