August 14, 2026 | 12:30 pm
TEMPO.CO, Jakarta – The Jakarta Composite Index (JCI) rose in Friday’s first trading session as investors responded to President Prabowo Subianto’s state address, with some buying interest concentrated on shares of state-owned companies.
Market analyst Elandry Pratama said remarks made by Prabowo provided a positive short-term sentiment for the Indonesian stock market, although he cautioned that the rally would need to be supported by stronger corporate fundamentals.
The JCI gained 35.42 points, or 0.56 percent, to 6,337.19 at the close of the first session on Friday, August 14, 2026.
Trading frequency reached around 1.03 million transactions, with 17.04 billion shares changing hands at a total value of Rp6.47 trillion.
State-Owned Firms Draw Buying Interest
Elandry said Prabowo’s remarks could encourage investors to increase their exposure to Indonesian stocks, particularly shares of state-owned enterprises (SOEs) mentioned during the address.
“Mr. Prabowo’s statements can become a sentiment booster that strengthens buying interest, which the market then reflects through higher share prices,” Elandry told ANTARA in Jakarta on Friday.
He said the buying interest appeared to be concentrated first on SOE stocks, given the companies’ role in implementing government programs and aligning their business strategies with government policies.
However, Elandry said investors should not interpret the initial market response as a sign of a sustained rally.
Fundamentals Remain Key
Elandry said further gains in the JCI would depend on improvements in the financial performance and fundamentals of listed companies, while investors would also need to consider global market conditions and sentiment.
“Expectations for further gains need to be supported by improvements in issuers’ fundamentals and performance, without overlooking current global conditions and sentiment,” he said.
He also warned that investors could take profits after the recent gains, particularly because rallies driven primarily by market sentiment tend to be short-lived.
“The potential for profit-taking remains because rallies driven by this kind of sentiment tend to be short-term,” Elandry said.
Investors Await Economic Policy Signals
Elandry said Prabowo’s state address was among the market-moving events investors were watching, particularly for signals on the government's economic, fiscal and investment policies.
“The president’s state address is a market-moving event that investors will pay close attention to, especially if it provides clearer direction on economic, fiscal and investment policies, as well as stimulus measures,” he said.
Prabowo delivered his state address at the Annual Session of the People's Consultative Assembly (MPR) and a joint session of the House of Representatives (DPR) and Regional Representatives Council (DPD) in Jakarta on Friday.
He is also scheduled to present the government's introductory remarks on the 2027 state budget bill and its financial note.
Investors are expected to scrutinize the government's growth target, fiscal deficit, rupiah exchange-rate assumptions, financing strategy and programs that could affect consumption and investment.
The DPR Budget Committee has identified eight priority areas for 2027, including food sovereignty, energy and water security, education, healthcare, downstream processing and industrialization, infrastructure, housing, disaster resilience, the people's economy and villages, and poverty reduction.
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