August 14, 2026 | 09:23 pm
TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) strengthened 1.59 percent to 6,401.89 on Friday, August 14, 2026, after President Prabowo Subianto delivered his state address and introduced the 2027 Draft State Budget (RAPBN). Chief Economist of Trimegah Sekuritas Indonesia, Fakhrul Fulvian, assessed that the positive market response demonstrated the increasingly clear direction of Prabowo administration’s economic policies.
Fakhrul described this speech as the most convincing for the capital market since Prabowo took office because it clearly outlined his economic policies. In the 2027 RAPBN, the government targets economic growth of 6 percent, higher than the 2026 State Budget (APBN) target of 5.4 percent.
The government also set a deficit of 2.4 percent of Gross Domestic Product (GDP) in the 2027 RAPBN, lower than the 2026 APBN target of 2.68 percent. Although the target deficit is lower, Fakhrul said the market is looking at more than just the deficit’s size. It is also looking at how the government creates growth, attracts investment, and stimulates the private sector.
"The market always looks at the bigger story than just the deficit figures. They want to know how growth will be generated, how capital will flow in, and how businesses can gain the confidence to invest," said Fakhrul.
He assessed that several of Prabowo's agendas, including downstreaming, the Indonesia Financial Center, the Commodity Exchange, the Gold Bank, and capital market reform, were aimed at mobilizing economic resources more productively. He stated that deepening capital markets and the return of private investment were key to growth, although investors were still awaiting a roadmap and concrete implementation of these policies.
According to Fakhrul, the challenge moving forward is ensuring that the development vision is translated into consistent and predictable policies for market players, not formulating it.
In addition to JCI, the rupiah also strengthened against the US dollar at the close of trading today. The rupiah strengthened 50 points (0.28 percent) to Rp17,827 per US dollar, from the previous close of Rp17,877. Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) also strengthened today, reaching Rp 17,836 per US dollar, up from Rp 17,882.
Doo Financial Futures currency analyst Lukman Leong stated that the rupiah's strengthening was a positive market response to President Prabowo's 2027 RAPBN speech. "The rupiah strengthened against the US dollar, and the Jakarta Composite Index (JCI) rose due to the positive investor response to President Prabowo's RAPBN speech. I view this as cautiously positive," he said, as quoted by Antara.
In his speech, the Head of State targeted economic growth to increase by 6 percent from the 2026 APBN assumption of 5.4 percent, inflation of 2.5 percent, a budget deficit set at Rp671.2 trillion or 2.4 percent of GDP with total spending of Rp4,097 trillion, then the interest rate on 10-year Government Securities (SBN) of 6.9 percent, the rupiah exchange rate of Rp17,500 per US dollar or higher than Rp16,500 per US dollar in the 2026 APBN.
Next, the price of Indonesian crude oil is US$75 per barrel, up from the 2026 benchmark of US$70 per barrel. Crude oil lifting is 610,000 barrels per day, in line with 2026 assumptions. Finally, natural gas lifting is at 954,000 barrels of oil equivalent per day (BOEPD), down from the 984,000 BOEPD that was set in the 2026 APBN assumptions.
The poverty reduction target is in the range of 6-6.5 percent, an improvement from the 2026 target of 6.5-7.5 percent. The open unemployment rate is 4.3-4.87 percent, the human capital index is 0.575, and the Gini ratio is 0.362-0.367. "The growth, rupiah, and deficit targets are still acceptable to investors," Lukman said.
Read: Analyst Says Prabowo's Speech Lifts Sentiment as JCI Gains 0.56%
Click here to get the latest news updates from Tempo on Google News
Today's Top 3 News: JCI Closes 1.13% Lower as Investors React to August MSCI Review
4 jam lalu
Here is the list of the top 3 news on Tempo English today.
Analyst Says Prabowo's Speech Lifts Sentiment as JCI Gains 0.56%
12 jam lalu
JCI rose 0.56% as investors responded to Prabowo's state address, with buying interest focused on shares of state-owned companies.
JCI Closes 1.13% Lower as Investors React to August MSCI Review
1 hari lalu
Indonesia's JCI fell 1.13% as investors reacted to MSCI's August review, with stock removals and profit-taking weighing on the market.
JCI Weakens as Markets Assess MSCI's Latest Index Changes
1 hari lalu
Indonesia's JCI fell as investors assessed the impact of MSCI's latest review on local stocks and market sentiment.
Why the Rupiah Is Expected to Fluctuate Next Week
13 hari lalu
Analyst predicted the rupiah would remain volatile in the coming week, with potential movement between Rp18,020 and Rp18,070 per US dollar.
JCI Rises as Asian Markets Rally on US Economic Data, China Signals
14 hari lalu
Indonesia's JCI rose 0.8% to 6,236 as Asian markets gained on US economic data, China policy signals, and positive domestic sentiment.
Indonesia Shares Fall Ahead of Fed Decision as BI Leadership Changes
18 hari lalu
Indonesia's stock market fell ahead of the Fed meeting as investors monitored global cues and the leadership transition at Bank Indonesia.
Indonesia's JCI, Rupiah End Week Lower Amid Market Pressures
21 hari lalu
Indonesia's JCI fell 1.88% while the rupiah weakened on Friday as rising oil prices, new US tariffs, and trade deficit concerns hit market sentiment.
JCI Gains as Investors Welcome Earnings Season
28 hari lalu
Indonesia's JCI closed higher Friday as investors welcomed the upcoming release of Q2 and first-half 2026 corporate earnings.
Middle East Tensions to Overshadow JCI Gains This Week
32 hari lalu
JCI closed stronger by 0.83 percent at the level of 5,924 last week. This week, the growing tension in the Middle East is expected to put a damper.
