Indonesia Stocks Rebound

Indonesian shares slid 98 points, or 1.4%, to 7,001 in Thursday morning trade, reversing modest gains from the prior session and tracking broader weakness across Asia after Wall Street’s mixed close overnight. The U.S. reportedly plans for an extended blockade of Iran, lifting oil prices and weighing on risk appetite. Meantime, the Fed left rates unchanged for a third meeting, but four officials dissented. For April, local markets are heading for a fourth straight monthly decline, down about 0.4%, due to inflation concerns following higher non-subsidized fuel prices. Caution also mounted ahead of key domestic releases next week, including April inflation. Still, losses were offset by the launch of downstream projects worth IDR 116 trillion to boost industrial output. All sectors fell, with industrials, basic materials, and energy leading drops. Notable losers included Bank Jago (-6.7%), ESSA Industries (-6.3%), and Mitra Adiperkasa (-4.7%). Markets will be closed Friday for a holiday.

Indonesia’s IDX Composite rose 33 points or 0.5% to 7,106 in early Wednesday trade, snapping a seven-session losing streak and rebounding from a near three-week low. Bargain hunting lifted sentiment, while a notable rise in U.S. stock futures added support ahead of the Federal Reserve’s rate decision later today. Locally, news said the government had scrapped the Free Nutritious Meal program on Saturdays to save roughly IDR 1 trillion daily, easing fiscal pressures. However, gains were tempered by caution before key domestic releases later this week, including April CPI and March trade data. Meanwhile, Indonesia’s state logistics agency reportedly warned of limited supply for subsidized cooking oil, due to a lack of fresh supply from producers. Sector performance was broadly positive, led by non-cyclicals, industrials, and financials. Notable movers included Gojek Tokopedia (5.7%), Indo Tambangraya Megah (2.6%), Astra International (2.1%), and Adaro Andalan Indonesia (1.8%).

Indonesian shares slipped 50 points, or 0.7%, to 7,056 in Tuesday morning trade, marking losses for a seventh straight session and hovering near a three-week low. Sentiment stayed fragile as prospects for ending the Middle East conflict appeared dim. Iran reportedly offered to halt attacks on ships in the Strait of Hormuz in exchange for a full end to the war, but President Trump voiced skepticism. Locally, concerns mounted after the government’s emergency fund shrank by more than Rp300 trillion, raising fears over Indonesia's fiscal health and a potential financial crisis. Still, weakness was offset by optimism that the IDX Composite has entered oversold territory, with analysts flagging rebound potential. Losses were broad-based, led by non-cyclicals, transport, and energy. Major laggards included Bank CIMB Niaga (-8.9%), MNC Digital (-7.8%), and Triputra Agro Persada (-4.3%). Focus now shifts to the U.S. Fed’s rate decision and key domestic data on April inflation and March trade.