JAKARTA — Indonesia’s benchmark stock index may extend its recovery on Friday, July 17, 2026, after foreign investors returned to the regular market and domestic investment data provided a more constructive economic backdrop.

Phintraco Sekuritas expects the Jakarta Composite Index, or JCI, to trade with support at 6,080, a pivot point at 6,125 and near-term resistance at 6,175.

The forecast follows a strong session on Thursday, when the index gained 1.10% to close at 6,108.21.

Foreign investors recorded Rp283.41 billion in net purchases through the regular market. The Indonesian rupiah also strengthened by 0.46%, finishing at Rp17,986 against the US dollar.

Technical Structure Remains Constructive

Phintraco’s technical assessment shows the benchmark holding above both its five-day and 20-day moving averages.

Remaining above the two short-term averages suggests that the market’s recent upward momentum has not yet been broken. The Moving Average Convergence Divergence indicator has also started to show a widening positive slope.

Together, these signals support the possibility of a move toward the 6,125–6,175 resistance zone. A convincing break above that range would strengthen the case for a broader recovery.

The 6,080 level is expected to serve as the nearest support. A decline below that threshold could weaken the immediate bullish scenario and lead to consolidation following Thursday’s advance.

Foreign Buying Returns to the Regular Market

The return of net foreign buying is particularly important after overseas investors had previously reduced their positions in several Indonesian large-cap stocks.

Sustained foreign inflows could provide additional demand for index-heavy companies, especially in banking, telecommunications and consumer-related sectors.

However, a single session of net buying does not necessarily mark a lasting reversal in foreign capital flows. Investors will need to assess whether overseas demand continues and whether the JCI can remain above the psychologically important 6,000 level.

Investment Data Strengthens Domestic Sentiment

Indonesia recorded Rp511.8 trillion in investment realization during the second quarter of 2026. The figure increased 7.1% from a year earlier and represented 25.1% of the government’s full-year investment target.

Foreign and domestic capital made almost equal contributions. Foreign direct investment accounted for 50.4% of the quarterly total, while domestic direct investment represented 49.6%.

Investment distribution between Java and regions outside Java was also relatively balanced, indicating that new projects were not concentrated entirely in the country’s main economic centers.

The government said long-term commitments from investors in China, Japan, South Korea and other major partner countries remained strong. Regulatory certainty and improvements to Indonesia’s investment climate continue to be key priorities.

Quarterly FDI Reaches a Record

Foreign direct investment excluding the financial and oil and gas sectors surged 27.4% year-on-year to a record Rp257.7 trillion in the second quarter.

The expansion accelerated sharply from growth of 8.5% in the first quarter and marked the strongest annual increase since the fourth quarter of 2024.

The basic metals industry attracted the largest amount of foreign capital, followed by other services and mining. This pattern underlines the importance of mineral processing and downstream industrial projects in Indonesia’s investment strategy.

Official government data show that cumulative foreign investment reached Rp507.6 trillion in the first half of 2026. Total investment from both foreign and domestic sources amounted to Rp1,010.6 trillion during the same period.

Singapore remained Indonesia’s largest foreign investment source for the first half, followed by Hong Kong, mainland China, Japan and the United States.

The strong FDI result may support production capacity, construction activity and employment. Nevertheless, Phintraco noted that Indonesia’s reliance on commodity-related investment remains a risk, particularly if global mineral prices or external demand weaken.

Five Stocks on Phintraco’s Watchlist

Against this market backdrop, Phintraco highlighted five Indonesian stocks for investors to monitor during Friday’s session.

The selection spans several industries. BBCA provides exposure to Indonesia’s banking system, while ICBP is closely linked to domestic consumer demand. EXCL represents the telecommunications sector, TKIM offers exposure to pulp and paper, and SMGR is associated with cement demand and construction activity.

Investors should still assess entry prices, liquidity, trading volume and their individual risk tolerance. A move toward the JCI’s resistance area could also trigger profit-taking in stocks that have already advanced sharply.

Disclaimer: This article is intended solely for informational and educational purposes. The market outlook, technical levels and stocks mentioned do not constitute personalized investment advice or an invitation to buy or sell any security. All investment decisions remain the responsibility of each investor.