JCI Set to Rise on IDR 31T Stimulus, Fed Rate Expectations

RRI.CO.ID, Jakarta – The Jakarta Composite Index (JCI) is likely to continue its upward trend during trading on the Indonesia Stock Exchange (IDX) on Tuesday, October 6, 2026. A 31 trillion IDR (1.73 billion USD) stimulus package and expectations regarding the US Federal Reserve’s (the Fed) policy rate are catalysts that investors are closely watching.

The JCI opened up 20.27 points, or 0.33 percent, at 6,139.13. Meanwhile, the blue-chip stock index, the LQ45, also rose 2.23 points, or 0.37 percent, to 605.46.

Head of Research at Phintraco Sekuritas, Ratna Lim, said there is still room for the JCI to strengthen. “It is estimated that the JCI’s upward trend has the potential to continue, testing the 6,150–6,200 level,” Ratna said in her analysis in Jakarta on Tuesday, October 6, 2026, as quoted by Antara.

On the domestic front, the government has allocated IDR 31 trillion for an economic stimulus package in the fourth quarter of 2026 (Q4 2026). The program aims to maintain purchasing power, expand employment opportunities, and support the sustainability of the business sector.

The stimulus includes opening bank accounts for residents aged 17 and above in deciles 1–4, totaling IDR 1.28 trillion; rice aid of 10 kilograms per person, totaling IDR 17.5 trillion; and wage subsidies totaling IDR 12 trillion.

The government is also preparing an internship program for 150,000 participants and vocational training for 300,000 people by 2027. The income tax reduction under Article 21 (PPh 21) for workers earning less than IDR 10 million has been expanded to cover 7.5 million workers, and the government-subsidized value-added tax (PPN DTP) for housing has been extended.

In global markets, crude oil prices fell 1.9 percent to around USD 100 per barrel. The weakening of US employment data has also eased pressure on the Fed to raise policy rates.

Markets are awaiting the minutes of the September Federal Open Market Committee (FOMC) meeting to gauge the direction of future policy. However, yields on 10-year and 30-year US Treasury bonds remain at their highest levels since early 2002.

“This rise comes amid the announcement of the 2027 budget proposal, which targets a deficit of 5 percent of GDP and spending cuts totaling EUR 54 billion,” said Ratna.

Wall Street closed higher, with the S&P 500 up 0.66 percent, the Nasdaq up 1.05 percent, and the Dow Jones up 0.18 percent. In Asia, the Nikkei rose 0.36 percent and the Hang Seng 0.57 percent, while the Kospi fell 0.74 percent and the Straits Times Index declined 0.32 percent. ***