Indonesia Stocks Drop for Fourth Session

Indonesian shares fell slightly in early Thursday trade, hovering around 7,520 and marking a fourth session of losses. Risk appetite weakened after U.S. equity futures reteated sharply, following reports that the U.S. blockade of Iranian ports remained in place and Iran seized two ships in the Strait of Hormuz, despite President Trump’s ceasefire extension. Locally, recent hikes in non-subsidized fuel prices continue to weigh on households, notably the middle class, with risks of further rises if oil prices climb. Still, losses were capped after Bank Indonesia held its key rate at 4.75% for a seventh month, focusing on supporting the rupiah amid persistent capital outflows. On the fiscal side, the government plans to issue panda bonds in China, while rejecting loan offers from the IMF and World Bank. Basic materials and energy led declines, with major laggards from Barito Renewables Energy (-4.6%), TBS Energy Utama (-2.3%), Panin Financial (-2.2%), and Bukit Uluwatu Villa (-1.5%).

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%).