Indonesia's stock market showed a significant recovery in July 2026, following heavy pressure throughout the first half of the year. The Indonesian Composite Index (ICI) closed at 6,236.13 on July 31, 2026, up 10.51% month-to date, although it was still down sharply by 27.88% year-to-date due to global interest rate uncertainty, geopolitical tensions, rupiah depreciation, and prolonged foreign capital outflows. The recovery momentum was supported by S&P's decision to maintain Indonesia's credit rating at BBB with a stable outlook, a decline in US inflation, easing Middle East geopolitical tensions, and the return of foreign net buying worth Rp1.62 trillion throughout July. Bank Indonesia also held its benchmark interest rate at 5.75% while implementing triple intervention measures, allowing the rupiah to strengthen toward the end of the month.
