Indonesia Equities Extend Strength

Indonesian shares dipped 42 points, or 0.6%, to 7,323 in Friday trade, marking a third straight drop amid broad-based weakness led by industrials, transport, and infrastructure. Overnight losses on Wall Street weighed on sentiment, as fading hopes of a resolution to the U.S.–Israel war with Iran kept oil prices elevated, stoking inflation concerns. Meanwhile, Washington launched new probes into unfair trade practices tied to excess industrial capacity and forced labor, raising the risk of fresh tariffs on partners including China, the EU, India, and Japan. Still, losses were partly cushioned by strong domestic seasonal activity ahead of the Eid holiday period. Meantime, the government projected Q1 2026 growth could reach 6%, supported by strong household consumption. Notable laggards included Merdeka Copper Gold (-3.3%), Indofood (-3.0%), Bank Mandiri (-1.8%), and Sarana Menara Nusantara (-1.7%). For the week, the market is set for a third consecutive decline, down about 3.7% so far.

Indonesia’s IDX Composite slipped 24 points, or 0.3%, to 7,365 on Thursday, extending losses for a second straight session as U.S. stock futures tumbled and oil prices resumed their rally after reports of ship strikes in the Strait of Hormuz and Iraqi waters. Meanwhile, a U.S. plan to release record oil reserves failed to lift investors' sentiment. Domestically, scrutiny of financial sector governance persisted following leadership changes at the Financial Services Authority and transparency concerns. Still, losses were partly cushioned by the government’s distribution of IDR 11.16 trillion in Eid allowances to civil servants, aimed at boosting household consumption ahead of the festive season. Cyclicals, non-cyclicals, and technology weighed on the index, while energy and transport offered support. Among notable laggards were Vale Indonesia (-5.4%), Merdeka Battery Materials (-3.4%), Barito Pacific (-2.0%), and Semen Indonesia (-1.9%).

Indonesian stocks climbed 77 points, or 1%, to 7,518 in early Wednesday trade, continuing strong gains from the prior session amid a rally in U.S. futures after a report that the International Energy Agency may launch its largest-ever oil reserve release to cool crude prices. Sentiment was further buoyed by stronger-than-expected export and import data from top trading partner China in the first two months of 2026, signaling resilient demand overall. Locally, retail activity held firm in January, supported by seasonal spending ahead of Ramadan and Eid al-Fitr festival. However, advances were capped by caution as Bank Indonesia will hold a policy meeting next week after keeping interest rates unchanged for the fifth straight meeting in February. Gains were broad-based, led by transport, infrastructure, and property. Standout performers included Solusi Sinergi Digital (8.1%), Raharja Energi Cepu (5.6%), Sentul City (4.5%), Bukit Uluwatu Villa (3.3%), and Unilever Indonesia (2.1%).