Indonesia Stocks Rebound

Indonesian equities rose 48 points, or 0.6%, to 8,061 in Tuesday morning trade, bouncing back from the prior session’s sell-off as bargain hunters stepped in after the IDX Composite hit a three-week low. Sentiment improved as factory activity in the country grew for a seventh straight month in February, marking its fastest pace in over three years, driven by Ramadan and Eid al-Fitr-related demand despite global uncertainty. Meanwhile, Bank Indonesia reaffirmed its commitment to ensure rupiah stability. Gains were capped, however, by local trade data showing January’s surplus fell short of forecasts amid rising imports. Meantime, U.S.stock futures dropped sharply, with a surge in oil prices linked to the Middle East conflict fueling inflation concerns. Nearly all sectors gained, led by energy, industrials, and non-cyclicals. Strong performers included Adaro Andalan Indonesia (5.6%), United Tractors (3.8%), Indo Tambangraya Megah (3.0%), and Japfa Comfeed (2.5%).

Indonesia’s IDX Composite fell 114 points, or 1.4%, to 8,118 on Monday, the first trading day of March, after a muted prior session. Nearly all sectors weakened, with cyclicals, infrastructure, property, and industry among the top laggards, as U.S. futures slumped following President Trump’s pledge to continue combat operations in Iran after three U.S. service members were killed. Traders also turned cautious ahead of key domestic data later today, including February inflation and trade figures, while concerns lingered that the upcoming PMI data in main trading partner China may reflect holiday-related weakness. Still, losses were cushioned by expectations of fiscal expansion through social programs during Ramadan and Eid al-Fitr. Among major decliners were Vale Indonesia (-5.1%), Unilever Indonesia (-3.8%), Charoen Pokphand (-3.5%), and Bank Mandiri (-2.4%). In contrast, energy stocks surged, led by Medco Energi (8.7%), Adaro Andalan Indonesia (8.1%), and Aneka Tambang (4.4%).

Indonesian stocks dipped 58 points, or 0.7%, to 8,174 in Friday morning trade, marking a second straight loss amid weakness in U.S. futures after Wall Street closed mostly lower overnight, with Nvidia’s strong earnings results failing to lift investors' sentiment. Caution also persisted ahead of key domestic releases next week, including February inflation and January trade data, while China’s upcoming PMI readings added concern that the week-long Spring Festival may weigh on factory and services activity. On the trade front, U.S. President Trump imposed a 104% tariff on Indonesian solar products, citing subsidies that hurt U.S. producers. Most sectors in the IDX Composite slipped, led by energy, financials, and transport. Notable laggards included United Tractor (-3.5%), Indofood Sukses Makmur (-2.6%), and Barito Pacific (-1.5%). The market is heading for its first weekly drop in three, contributing to a second consecutive monthly decline, down about 1.7% so far.