Indonesia Shares Hit Two-Week Low, Weekly Loss Looms

Indonesia’s IDX Composite dropped 103 points, or 1.4%, to 7,275 in Friday morning trade, extending losses from the prior session and notching a two-week low. A drop on Wall Street overnight pressured sentiment, amid a fragile Middle East ceasefire and stalled U.S.–Iran peace talks. President Trump reportedly said he had ordered the Navy to “shoot and kill” Iranian boats laying mines in the Strait of Hormuz. On the financial front, Fitch cut the credit outlook of four major banks in Indonesia, including Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, and Bank Negara Indonesia, from stable to negative. Weekly, the index is on track to fall about 4%, following recent gains. Still, losses were capped by government efforts to secure 150 million barrels of Russian oil under its energy strategy. Declines were broad-based, led by infrastructure, basic materials, and cyclicals. Major laggards included Bank Tabungan Negara (-6.4%), Medco Energy (-4.2%), and Unilever Indonesia (-3.3%).

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 retreated 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 continued 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%).