Jakarta Stocks Climb as Prabowo’s Beijing Trip Signals Stability
Main Takeaways
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JAKARTA, Investortrust.id — Jakarta stocks rise as President Prabowo Subianto travels on Wednesday, Sep 3, 2025, to Beijing to attend a military parade marking 80 years since the end of World War II after delaying the trip amid unrest at home, a move investors read as evidence the security situation has stabilized and policy continuity holds, with the benchmark index opening up 0.54% at 7,842.
The Jakarta Composite Index (JCI), the benchmark of the Indonesia Stock Exchange (IDX), opened higher alongside broad sector gains led by basic materials, energy, consumer discretionary, property, financials, infrastructure, transportation, and healthcare.
The stronger tone followed a session on Tuesday that had already closed 0.85% higher at 7,801 even as foreign investors recorded a net sell of Rp 331.23 billion, driven largely by outflows from PT Bank Central Asia Tbk (BBCA) of Rp 598.63 billion, PT Bank Mandiri Tbk (BMRI) of Rp 335.76 billion, and PT Barito Renewables Energy Tbk (BREN) of Rp 86.85 billion.
China’s Ministry of Foreign Affairs confirmed the Indonesian leader’s arrival on Wednesday morning and said Beijing welcomed the visit. The parade at Tiananmen Square showcased China’s armed forces, including marching units, aerial formations, and advanced equipment, and drew more than two dozen heads of state and government.
The trip restarted a diplomatic agenda that had been put on hold. Prabowo had earlier canceled travel as protests flared nationwide, sparked by controversial privileges for members of parliament and inflamed by the death of an app-based motorcycle taxi driver. The President subsequently asked lawmakers to roll back parts of the incentives that drew public anger, a step aimed at calming tensions.
Minister of State Secretary Prasetyo Hadi said, as cited by regional broadcasters, that Prabowo departed for China on Tuesday night and planned to return the following day. He added that the President had monitored conditions and received reports suggesting daily life had begun to normalize.
A meeting with President Xi Jinping has been slated during the brief stop, with discussions expected to cover defense ties and broader cooperation. Indonesia maintains a “free and active” foreign policy and balances relationships with major powers, yet Prabowo has pledged to deepen practical defense collaboration with China where it supports national interests.
Equity traders took the departure as a constructive signal that the administration judged the security situation to be under control, supporting risk appetite at the open.
Gains were visible across small and mid caps, with PT Cakra Buana Resources Energi Tbk (CBRE) jumping 25% to Rp 290, PT Menthobi Karyatama Raya Tbk (MKTR) rising 24.83% to Rp 181, and PT Jaya Swarasa Agung Tbk (TAYS) advancing 20% to Rp 90. The breadth of early winners complemented Tuesday’s momentum, when multiple third-liners also hit auto-reject-up levels.
Short-term, dealers said the key watchpoints would be the pace of foreign flows relative to local buying, potential follow-through in cyclicals, and any new guidance from authorities on security and legislative measures. A smooth return from Beijing and clear messaging on domestic priorities could further anchor the stability narrative priced in at the open.
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