The Composite Stock Price Index of the Indonesia Stock Exchange strengthened on Thursday in line with loose monetary policies by central banks, both domestically and internationally.
The Jakarta Composite Index (JCI) opened up 40.56 points, or 0.51 percent, to 8,065.74. Meanwhile, the 45-stock blue chip index, or LQ45, rose 5.29 points, or 0.65 percent, to 820.51.
"We estimate the JCI has the potential to continue strengthening and test the 8,150 level," said Ratna Lim, Head of Research at Phintraco Sekuritas, in a study.
Domestically, the Bank Indonesia (BI) Board of Governors Meeting (RDG) in September 2025 decided to cut the benchmark interest rate (BI-Rate) by 25 basis points (bps), bringing it to 4.75 percent.
Cumulatively, through September 2025, BI has cut its benchmark interest rate by 125 bps this year, reaching its lowest level since October 2022. The rate cut is in line with inflation forecasts within BI's target range, a stable rupiah, and efforts to boost economic growth.
BI reported that credit growth in August 2025 reached 7.56 percent year-on-year (yoy), up from 7.03 percent (yoy) in July 2025, marking the first increase after five consecutive months of decline.
In Asia, market participants will be closely monitoring Japan's inflation data for August 2025, which is expected to decline to 2.8 percent (yoy) from 3.1 percent (yoy) in July 2025.
