JCI Rebounds as Investors Monitor Prabowo's Economic Speech

May 20, 2026 | 11:51 am

TEMPO.CO, Jakarta - Indonesia’s benchmark stock index, the Jakarta Composite Index (JCI), rebounded in Wednesday morning trading as investors monitored President Prabowo Subianto’s speech before a parliamentary plenary session later in the day.At 09:45 AM Jakarta time, the JCI rose 54.58 points, or 0.86 percent, to 6,425.26 after initially opening lower. Meanwhile, the LQ45 index, which tracks 45 leading stocks on the Indonesia Stock Exchange (IDX), climbed 9.07 points, or 1.43 percent, to 643.89.Capital market analyst and Republik Investor founder Hendra Wardana said the 6,300 level remains a crucial psychological support area for the JCI.“Technically, the 6,300 area is a very important psychological support level for the JCI. If this level can be maintained, the opportunity for a rebound toward the 6,500-6,535 range remains open,” Hendra told Antara in Jakarta on Wednesday.“However, if that support level is breached, the risk of further weakening will increase significantly as the market could enter a short-term crisis of confidence phase,” he added.Domestically, Hendra said investors are closely watching Prabowo’s address at the House of Representatives plenary session. Market participants are expected to focus on the government’s fiscal policy direction, economic stability strategy, measures to strengthen the rupiah, and the administration’s response to mounting pressure in financial markets.According to Hendra, if the speech provides clarity on policy direction, fiscal discipline, and signals support for market stability and businesses, market sentiment could improve and open room for a technical rebound in the JCI.“However, if investors believe there are still no concrete measures to restore market confidence, pressure on the domestic market may continue,” he said.Hendra added that investors are currently seeking more than just positive sentiment.“What the market needs now is confidence. When global pressures have started to ease but the JCI continues to fall, it means investors are waiting for certainty regarding Indonesia’s economic direction going forward,” he said.He described Prabowo’s speech as a potentially important moment in determining whether the market can begin stabilizing or instead lose direction again.Aside from fiscal policy, investors are also closely monitoring movements in the rupiah exchange rate.According to Hendra, the weakening rupiah not only increases imported inflation pressures but also raises concerns over corporate foreign debt burdens and the government’s fiscal risks.“When the rupiah continues to weaken while foreign funds are leaving the stock market, pressure on the JCI usually becomes much greater. Therefore, rupiah stability in the coming days will be one of the main factors determining whether the market can rebound or instead return to panic selling,” he said.Investors are also awaiting the outcome of Bank Indonesia’s Board of Governors Meeting (RDG), with the central bank widely expected to keep its benchmark BI-Rate unchanged at 5 percent later on Wednesday.From overseas, Hendra said global sentiment has started to improve after U.S. President Donald Trump delayed plans for a possible strike on Iran in order to allow room for peace negotiations.The statement helped ease concerns over potential disruptions to global oil supplies and pushed crude oil prices lower.European markets closed mixed on Tuesday, May 19, 2026. The Euro Stoxx 50 rose 0.07 percent, Britain’s FTSE 100 gained 0.07 percent, Germany’s DAX climbed 0.38 percent, while France’s CAC 40 slipped 0.07 percent.Meanwhile, Wall Street closed broadly lower on Tuesday. The Dow Jones Industrial Average fell 0.65 percent, the S&P 500 dropped 0.67 percent, and the Nasdaq Composite declined 0.61 percent.Asian markets also traded lower on Wednesday morning. Japan’s Nikkei fell 845.59 points, or 1.39 percent, to 59,710.00, while China’s Shanghai Composite dropped 18.22 points, or 0.44 percent, to 4,151.32. Hong Kong’s Hang Seng Index declined 213.85 points, or 0.83 percent, to 25,548.50, and Singapore’s Straits Times Index slipped 39.01 points, or 0.77 percent, to 5,033.52.Read: Prabowo Explains Why He Delivered Economic Speech in ParliamentClick here to get the latest news updates from Tempo on Google News