The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) weakened on Thursday morning as market participants adopted a "wait-and-see" approach to Fed Chairman Jerome Powell's speech.
The Jakarta Composite Index (JCI) opened lower by 39.99 points, or 0.50 percent, to 7,903.83. Meanwhile, the 45-stock blue-chip index, or LQ45, rose 0.91 points, or 0.11 percent, to 827.86.
"The JCI is expected to continue strengthening and test the 7,970 to 8,000 levels," said Phintraco Sekuritas analyst Ratna Lim in a study in Jakarta on Thursday.
Internationally, market participants are adopting a wait-and-see approach to Fed Chairman Jerome Powell's speech at the Jackson Hole symposium on Friday (August 22nd), which will serve as a reference for the Fed's monetary policy direction at its September 2025 meeting.
Meanwhile, minutes of the Fed's July 2025 meeting showed Fed officials were concerned about labor market conditions and inflation in the United States (US), although most agreed it was too early to lower interest rates.
At that time, the Fed again kept interest rates on hold, but two Fed governors dissented, marking the first time two voting Fed officials had done so since 1993.
From the Asian region, the People's Bank of China (PBOC) maintained the 1-year Loan Prime Rate at 3 percent and the 5-year Loan Prime Rate at 3.5 percent, which is a record low, which is the third consecutive month the PBOC maintained interest rates at that level, even though some economic data showed weakness.
Domestically, the Bank Indonesia (BI) Board of Governors Meeting (RDG) in August 2025 decided to lower the BI Rate by 25 basis points (bps) to 5 percent, the fourth reduction this year and the lowest level since October 2022.
Credit growth in July 2025 was recorded at 7.03 percent year-on-year (yoy), slowing from 7.77 percent (yoy) in June 2025, the lowest level since March 2022. This reflects weakening purchasing power, a declining middle class, and increased bank caution in disbursing credit.
