Four consecutive trading days since the close of trading on Friday, August 8, 2025 last week, the Indonesian stock market has performed impressively. As of Wednesday July 13, 2025, the Jakarta Composite Index (JCI) surged 1.30% to 7,892.91, setting a new record high in 2025 and almost equaling the all-time high - just 0.22% difference.
The strengthening of JCI was again driven by net buy of foreign investors reaching Rp 1.49 trillion in all markets. Net foreign buy in the regular market reached Rp 1.52 trillion. Meanwhile, in the negotiation market, there was a net sell or foreign net sell of Rp 34.72 trillion.
The technology sector was the one that drove the surge in the stock market on Wednesday, reaching 3.98%. The healthcare sector rose 1.56%, the property and real estate sector gained 1.49%, followed by the infrastructure sector 1.46%. Then the non-primary consumer goods sector rose 1.12%, while the industrial sector rose up to 0.79%.
Then, the energy sector strengthened 0.66%, and the financial sector lifted 0.20%, and the raw goods sector rose 0.06%. The total volume of stock transactions reached 36.83 billion shares with a transaction value of IDR 21.08 trillion. A total of 346 stocks gained. There were 280 stocks that weakened and 173 stocks were flat.
Bank Permata Chief Economist, Josua Pardede, sees the biggest stock sector gain, the technology sector, as a force that could ignite market passion, breaking new psychological limits in the days ahead.
The technology sector led the daily gain of +4.0% and still recorded a year to date (YTD) surge of over 140%. "This shows that there is euphoria in growth stocks, which if it continues can help JCI test the 8,000 level in the near future," said Josua.
On the other hand, the banking sector is also a sector that contributes to the increase in JCI. Josua explained that banks received positive sentiment from the prospect of lowering Bank Indonesia's (BI) benchmark interest rate, which is expected to reduce thecost of funds and encourage lending.
Banking stocks are expected to be the main entry point for institutional investors, especially foreigners, to invest in the Indonesian market due to their high market capitalization and liquidity.
Josua said that banking fundamentals are also relatively solid with stable profit growth and maintained asset quality. "Making it a defensive choice as well as a proxy for domestic economic growth," he explained.
The main catalyst or main driver of the JCI increase came from global sentiment, especially expectations of Fed interest rate cuts, as well as foreign capital inflows into the stock market and Government Securities (SBN). Domestically, the solid performance of issuers in the first semester financial report also supported the strengthening of the market.
Capital Market Analyst from Astronacci International, Anthonius Edyson, is also of the view that the JCI, which has broken out of the consolidation area, has a great opportunity to continue strengthening towards the next level. "Technically, JCI has indeed broken through the consolidation area so that it can continue to strengthen towards the next resistance," he told SUAR.
With this achievement, Josua estimates that JCI will strengthen moderately in the second semester of 2025. The stable target is in the range of 7,800-8,000 until the end of the year, provided that global conditions remain conducive. "BI rate cuts, political stability, and acceleration of state budget realization are the main domestic catalysts," he explained.
He revealed that issuers with strong balance sheets, clear revenue growth prospects, and exposure to the banking, technology, and consumption sectors are expected to be the locomotives driving the JCI.
While the technology and infrastructure sectors are projected to be the most prominent thanks to a combination of structural growth and short-term boost from government projects.
