FX.co ★ Indonesia Stocks Hit Fresh High Ahead of Government Budget

The IDX Composite rose by 30 points, equivalent to a 0.4% increase, reaching 7,961 during Friday's morning session, and set a new record high. This surge occurred in anticipation of the forthcoming announcement regarding the government's budget for the fiscal year 2026. Later today, Indonesian President Prabowo Subianto is scheduled to present the budget details in a parliamentary address. Market participants are particularly keen to learn about the GDP growth projections, especially considering the recent imposition of a 19% tariff by the United States on Indonesian exports. Prior discussions between Parliament and the government had established the fundamental macroeconomic assumptions for the Draft State Budget for 2026, forecasting economic expansion in the range of 5.2% to 5.8%. Additionally, market sentiment remains bolstered by the possibility of a Federal Reserve interest rate reduction at the forthcoming September meeting. Nonetheless, market gains were somewhat restrained due to a series of underwhelming economic data releases from China, Indonesia's primary trading partner. Despite this, all industry sectors experienced positive performance, with the technology sector leading the surge, followed by healthcare, energy, and real estate. Noteworthy gainers included Indah Kiat, which climbed by 3.5%, AKR Corporindo, which increased by 2.8%, and Medco Energi Internasional, rising by 1.2%.