Stocks Gain at Open as Global Markets Rally, Growth Risks Linger

Jakarta. Jakarta Composite Index opened higher on Friday, rising 39 points or 0.45% to 8,657, supported by a positive global lead even as investors weighed a cautious medium-term outlook for Indonesia’s economy.

RTI data showed trading volume reached 2.22 billion shares in the first five minutes, with turnover of Rp 1.19 trillion ($71.1 million) across more than 193,000 transactions. Market breadth was mixed, with 258 stocks advancing, 216 declining, and 192 unchanged.

Pilarmas Investindo Sekuritas said in its research that the World Bank expects Indonesia’s near-term economic growth to hover around 5%, making the government’s 8% growth target difficult to achieve in the short run. The bank flagged persistent structural challenges, particularly softer household consumption as income pressures on the middle class have lifted precautionary savings, reducing the contribution of private consumption to growth.

Growth is expected to rely more heavily on investment, supported by government spending, the role of Danantara, and a more accommodative monetary policy stance to spur credit and foreign direct investment. On the fiscal side, Pilarmas highlighted the World Bank’s warning that the budget deficit could widen toward the 3% of GDP ceiling by 2027, alongside a declining revenue ratio and rising debt servicing costs, with government debt projected to exceed 41.5% of GDP. Maintaining fiscal space will require stronger tax policy and administration to sustain productive spending and investor confidence, the research said.

Overnight, US stocks advanced after a softer-than-expected inflation report boosted hopes of further rate cuts next year.

The S&P 500 rose 0.8%, snapping a four-day losing streak, while the Dow Jones Industrial Average added 65 points, or 0.1%. The Nasdaq Composite jumped 1.4%, led by technology stocks.

US inflation eased to 2.7% last month, with core CPI at 2.6%, below market expectations of 3%, reinforcing expectations that price pressures are moderating and opening room for rate cuts in 2026. CME FedWatch data showed investors pricing a 47% chance of a more dovish Federal Reserve stance by March, though some analysts cautioned that recent data remain noisy following the earlier US government shutdown.

Asian markets mostly strengthened on Friday as investors awaited the Bank of Japan’s policy decision.

Japan’s Nikkei rose 0.78% to 49,387, South Korea’s Kospi climbed 1.5% to 4,055, Hong Kong’s Hang Seng gained 0.53% to 25,634, and Shanghai’s SSE edged up 0.05% to 3,878.

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Keywords:

IDX
Jakarta Composite Index JCI
World Bank Outlook
Fed
Bank of Japan