Indonesia’s Composite Index Opens 0.56% Higher as Investors Watch Global Sentiment

Indonesia’s benchmark stock index opened higher on Thursday, but investors remained focused on a volatile global picture. The Jakarta Composite Index, known as IHSG, rose 37.05 points, or 0.56%, to 6,632.83. The LQ45 index of 45 leading shares gained 0.51% to 655.17.

Liza Camelia Suryanata, head of research at Kiwoom Sekuritas, said the index could retest resistance at 6,635 and potentially close a price gap at 6,733 if it holds above 6,510. A bout of profit-taking could instead push the market toward support levels at 6,551, 6,510 and 6,454.

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As long as IHSG can hold above the 6,510 area, the prospect of further gains remains open, with a possible retest of resistance at 6,635 and a possible close of the gap at 6,733. Conversely, if profit-taking occurs, IHSG could correct back toward support at 6,551, 6,510 and 6,454.

International risks are adding to investor caution. The United States launched a new wave of attacks on Iranian Revolutionary Guard targets, including air-defense, radar and communications facilities. Iran reportedly responded with ballistic missile strikes against a U.S. Marine base in Jordan. The escalation has increased concern about regional security and possible disruption to energy trade through the Strait of Hormuz.

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These conditions make the market increasingly dependent on economic data, especially employment and inflation reports, to estimate the Fed’s next move.

Investors are also assessing whether interest rates will remain high for longer after government bond yields rose in several countries. Higher energy prices have added to inflation risks, while weakening U.S. labor data points to a possible slowdown. Private employers added 38,000 jobs in August, below the expected 47,000 and the slowest pace since January. Manufacturing orders, however, rose 0.9% in July, and the Federal Reserve’s Beige Book reported moderate growth across most regions.

Markets are now awaiting the U.S. August nonfarm payrolls report, due Friday, for clues about the labor market and the Federal Reserve’s next move. Domestically, the government and parliament’s Commission XI agreed on 2027 budget assumptions that target 6.0% economic growth, 2.5% inflation, a rupiah exchange rate of 17,500 per dollar and a 10-year government bond yield of 6.9%.

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Investors will now focus on the U.S. August Nonfarm Payrolls data, to be released Friday, as an important guide to labor-market conditions and the direction of the Fed’s monetary policy.