JCI Rises on Earnings, Fed Decision Uncertainty

The Jakarta Composite Index (JCI) finished the week higher, rising 0.64% to 6,236.1 on July 31. This increase was driven by solid corporate earnings, a wait-and-see approach ahead of the Federal Reserve's monetary policy decision, and uncertainty surrounding Bank Indonesia's leadership.

Foreign investors recorded net selling of Rp250.58 billion on Friday, bringing their cumulative net sell for 2026 to Rp72.99 trillion. Trading during July 27-31 was shaped by stronger-than-expected domestic corporate earnings, a wait-and-see approach ahead of the Federal Reserve's monetary policy decision, uncertainty over the succession at Bank Indonesia, and volatility in energy prices amid geopolitical tensions.

At the latest FOMC meeting concluded on July 29, the Federal Reserve voted to keep the federal funds rate unchanged at a target range of 3.50% to 3.75%. Domestically, investors continued to monitor the fallout from the abrupt resignation of Bank Indonesia Governor Perry Warjiyo.