Jakarta stocks jump at open as strong bank lending lifts sentiment

JAKARTA, 21 JULY 2026 —

Jakarta stocks surged at the open on Tuesday after Bank Indonesia reported a sharp pickup in bank lending, offsetting caution over Middle East tensions and rising oil prices.

Advancers outnumbered decliners by a wide margin. Of the 645 issues traded, 293 advanced, 99 declined and 253 remained unchanged.

The rebound followed Bank Indonesia’s latest Banking Survey, which showed the weighted net balance (WNB) of new loan disbursements jumped to 93.08% in the second quarter of 2026. The reading compares with 38.74% in the first quarter of 2026 and 85.22% in the same period last year, Phintraco Sekuritas reported.

Lending growth accelerated across all categories. Working capital loans led at 94.34%, followed by investment loans at 93.51% and consumer loans at 83.67%.

Phintraco said the rise in credit suggests domestic economic activity remained expansionary even as banks tightened lending standards during the quarter.

Domestic sentiment also improved after S&P Global Ratings reaffirmed Indonesia’s BBB investment-grade rating with a stable outlook last week.

“Investors should, however, remain cautious if higher oil prices persist, as they could revive expectations of further Federal Reserve rate hikes and continued US dollar strength,” Phintraco said.

Kiwoom Sekuritas Indonesia said perceived risk had risen, with five-year and 10-year credit default swap spreads widening on higher global oil prices, expectations of tighter monetary policy, rising domestic inflation and rupiah weakness.

“Consistency in maintaining fiscal discipline, monetary stability and regulatory certainty will be essential to restore investor confidence and safeguard the stability of Indonesia’s financial markets,” Kiwoom said.

The brokerage added that the government may cut prices for non-subsidized fuels, including Pertamax, if global crude prices continue to fall, while subsidized fuel prices will remain unchanged through 2026 and domestic crude and fuel supplies are secured until year-end.

Globally, investors remained cautious as markets weighed escalating Middle East tensions against the start of the second-quarter earnings season. The US military conflict with Iran and rising oil prices have renewed inflation concerns and increased uncertainty over the global outlook.

By 9:48 a.m. Jakarta time, Japan’s Nikkei gained 1.74%, South Korea’s Kospi climbed 1.85%, Hong Kong’s Hang Seng slipped 0.16% and China’s Shanghai Composite fell 0.40%.

Overnight on Wall Street, the S&P 500 slipped 0.2%, the Dow Jones Industrial Average fell 307 points, or 0.6%, while the Nasdaq Composite was nearly flat, down less than 0.1%, as chipmakers pared some recent losses.

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