Associated Press, Ria Fortuna Wijaya, Jakarta – The Jakarta Composite Index closed sharply lower on Thursday, tracking concerns over the widening fiscal deficit after lawmakers approved the 2026 state budget.

The index slumped 1.06 percent to 8,040, moving within a range of 8,022-8,146. Trading volume reached 53.2 billion shares with a turnover of Rp25.7 trillion across 2.6 million transactions. Gainers totaled 242, while 434 stocks declined and 123 were unchanged.

Pilarmas Investindo Sekuritas said the drop was triggered by market jitters over fiscal stability. The House of Representatives (DPR) officially passed the 2026 State Budget Bill (RAPBN) into law, projecting state revenue at Rp 3,153.9 trillion ($188.4 billion), only slightly up from Rp3,147.6 trillion previously. Government spending, however, rose to Rp3,842.7 trillion from Rp3,786.4 trillion in the draft budget, leaving a deficit of Rp689.1 trillion.

"With the wider deficit, the risks to fiscal stability, purchasing power, and economic activity increase," Pilarmas wrote in a note, adding that investors are hoping for prudent fiscal management, spending prioritization, and stronger revenue collection.

Despite the market slump, eight stocks hit the upper trading limit. Retailer Bersama Zatta Jaya (ZATA) jumped 35 percent with 1.05 billion shares traded, fintech firm Topindo Solusi Komunika (TOSK) gained 13.4 percent with 1.07 billion shares, property developer Graha Andrasentra (JGLE) advanced 7.7 percent with 585 million shares, and renewable energy firm Futura Energy Global (FUTR) surged 25 percent with 519 million shares.

Top decliners included Bumi Teknokultura Unggul (BTEK), down 9.5 percent, Merdeka Gold Resources (EMAS) sliding 9.3 percent, Express Transindo (TAXI) falling 9.09 percent, and Garuda Indonesia (GIAA) retreating 9.09 percent.

Across Asia, markets ended mixed. Japan's Nikkei 225 rose 0.3 percent to 45,753.71 as Bank of Japan minutes suggested policymakers could raise rates if growth and inflation improve. Hong Kong's Hang Seng climbed 0.4 percent to 26,620.18, while Shanghai Composite edged up 0.1 percent to 3,855.72, supported by technology shares. South Korea's Kospi slipped 0.2 percent to 3,466.53 amid auto trade concerns, and Australia's S&P/ASX 200 inched 0.1 percent higher to 8,777.20.

Wall Street closed lower overnight, with the S&P 500 easing 0.3 percent to 6,637.97, the Dow Jones down 171 points to 46,121.28, and the Nasdaq slipping 0.3 percent to 22,497.86. The pullback comes after a strong rally since April, driven by hopes of multiple US Federal Reserve rate cuts. Still, analysts warned valuations may be overstretched if the Fed does not deliver as many cuts as markets expect.

Source: https://jakartaglobe.id/business/jci-drops-1-on-concerns-over-widening-fiscal-defici