Indonesia Markets Subdued Ahead of Central Bank Rate Call

Indonesia’s IDX Composite was little changed in Wednesday’s morning session, holding near 7,543 after two days of weakness, as traders awaited the central bank’s policy decision later today. Policymakers are expected to keep rates steady at 4.75% for a seventh consecutive meeting, though inflation risks are mounting amid Middle East conflict, threatening core price stability. On the local bourse, more than 10 investment managers signaled plans to launch gold ETF products, with several already signing cooperation agreements, underscoring strong industry readiness. Meanwhile, Wall Street closed lower overnight as President Trump extended the Iran ceasefire but maintained a naval blockade, prolonging uncertainty. Nearly all sectors traded higher except infrastructure. Gains in Kawasan Industri Jababeka (11%), Surya Semesta Internusa (7.7%), and Panin Financial (6.6%) were offset by declines in MD Entertainment (-2.6%), Buana Lintas Lautan (-1.9%), and Petrindo Jaya Kreasi (-1.6%).

Indonesian equities fell 63 points, or 0.8%, to 7,526 in early Tuesday trade, extending losses for a second session as declines in financials, industrials, and property weighed on sentiment. Investors remained cautious as Bank Indonesia begins its two-day policy meeting today, with interest rates expected to stay unchanged for a seventh time to support the rupiah. However, inflation risks linger amid the Middle East conflict, threatening core price stability. On Wall Street, stocks ended mostly lower overnight as renewed U.S.–Iran tensions cast doubt on the durability of a two-week ceasefire. Still, losses in Jakarta markets were tempered by optimism over ongoing reforms and capital market development, including ETF innovation and MSCI-related adjustments, seen as supportive for investor confidence. Major laggards included Dian Swastatika Sentosa (-12.2%), Transcoal Pacific (-9.3%), Barito Renewables Energy (-5.7%), Bank Rakyat Indonesia (-4.7%), and Alamtri Minerals Indonesia (-2.4%).

Indonesia's IDX Composite rose 36 points or 0.5% to 7,669 on Monday morning deals, marking gains for the second straight session amid strength in transport, industrial, and basic materials. Traders also welcomed reports that China, Indonesia's top trading partner, held its key lending rates at record lows for the 11th straight month in April, in line with estimates. However, a sharp drop in U.S. stock futures capped the gains after Washington seized an Iranian cargo ship attempting to breach its blockade, with Tehran vowing retaliation and ruling out further talks. Locally, Bank Indonesia will hold a policy meeting this week after leaving rates unchanged for the sixth straight time in March. While inflation remains within its target range for now, risks are skewed higher, with geopolitical strains posing threats to core inflation. Among early performers were Bumi Resources Minerals (5.3%), Impack Pratama Industri (4.4%), Energi Mega Persada (3.4%), and Triputra Agro Persada (3.0%).