Indonesia Shares Recover from Sharp Sell-Off

Indonesian shares climbed 91 points, or 1.6%, to 5,977 in Friday morning deals, marking advances for a fourth session after Wall Street rallied overnight on optimism that a U.S.–Iran deal could be reached as early as this weekend. Locally, officials signalled that the 2027 fiscal strategy will prioritise growth by coordinating fiscal and monetary policy, the financial sector, and Danantara-backed investment. Gains were tempered, however, by April retail sales data showing a 3.7% yoy decline, the first drop in a year, due to the drag from higher non-subsidized fuel prices on household spending. All major sectors strengthened, led by basic materials, industrials, energy, and transport. Standout movers included Darma Henwa (5.4%), Indofood Sukses Makmur (4.4%), Telkom Indonesia (3.1%), and Aneka Tambang (2.2%). For the week, the IDX Composite is on track for its first weekly rise in eight weeks, up around 6.6% so far, buoyed by bargain hunting after markets recently hit a six-year low.

Indonesian equities jumped 86 points, or 1.5%, to 5,988 in early Thursday trade, marking a third consecutive session of gains as U.S. futures were mainly higher following Wall Street’s overnight slump on heightened Middle East tensions and faster May inflation. Locally, sentiment was buoyed after the government scrapped its planned mining profit-sharing scheme and eased coal and nickel output quotas to stabilise industry. Separately, Finance Minister Purbaya Yudhi unveiled nine fiscal measures to cushion global uncertainty. Broad sectoral strength was led by property, infrastructure, and industrials, though momentum was tempered by softer consumer confidence in May and a sharp rise in non-subsidized fuel prices, reflecting higher import costs amid elevated crude and a weaker rupiah. Notable movers included Indosat (6.3%), Sarana Menara Nusantara (4.8%), Medco Energi (4.6%), Bank Negara Indonesia (4.3%), and Astra International (3.8%).

Indonesian shares surged 149 points, or 2.6%, to 5,895 on Wednesday morning deals, extending the prior session’s rally amid broad gains across major sectors. The local market moved further off last week’s six-year low as investors welcomed Bank Indonesia’s surprise 25bp rate hike to 5.5% Tuesday, aimed at stabilising the rupiah after repeated record lows. Confidence was further reinforced by sovereign wealth fund Danantara’s pledge not to take profit margins on strategic commodity exports and to honor existing contracts under the new centralization framework. In top trading partner China, annual inflation held steady at 1.2% in May, reflecting stable consumer demand. However, sentiment was tempered by a 32% rise in domestic non-subsidized fuel prices, effective today, as energy-import costs rise amid elevated global crude and a weaker currency. Standout performers included Barito Pacific (14.2%), Bank Negara Indonesia (8.6%), Bank Central Asia (7.3%), and Pertamina Geothermal (4.2%).