Indonesia Shares Recover from 13-Month Low

Indonesia’s IDX Composite climbed 54 points or 0.9% to 6,429 in Wednesday morning trade, snapping a six-session slide as bargain hunters stepped in after the benchmark hit a 13-month low the day before. Meanwhile, President Prabowo is set to present the 2027 budget framework to parliament later today, while the finance ministry reportedly plans daily IDR 2 trillion injections into the bond market to stabilize the rupiah, curb outflows, and ease volatility. Bank Indonesia, under pressure as the currency hovers near repeated historic lows, signaled a tilt toward pro-stability policy ahead of its meeting conclusion today. Gains were tempered by inflation risks from higher oil prices, despite April inflation staying mild. Meanwhile, U.S. stock futures weakened as Treasury yields climbed while tensions between Washington and Tehran lingered. Standout movers included Japfa Comfeed (4.4%), Timah (3.4%), Telkom Indonesia (3.2%), and Dian Swastatika Sentosa (2.7%).

Indonesia’s benchmark index slipped 31 points, or 0.5%, to 6,570 in Tuesday morning trade, extending losses for a sixth straight session and hovering near its weakest level since mid-2025. Sentiment was pressured by a retreat in U.S. equity futures, even as reports suggested President Trump postponed a planned strike on Iran. Locally, caution mounted as Bank Indonesia kicked off a two-day policy meeting, with expectations the board will lift rates to 5% after holding steady at 4.75% since last October. Political debate also flared after President Prabowo remarked that villagers are unaffected by rupiah weakness because they do not use U.S. dollars, drawing criticism over the government’s economic sensitivity. Sectoral losses were led by energy, non-cyclicals, and property, though gains in healthcare and cyclicals helped cap declines. Major laggards included Chandra Asri Pacific (-11.2%), Sumber Global Energy (-5.4%), Hartadinata Abadi (-4.2%), and Raharja Energi Cepu (-3.4%).

Indonesia’s IDX Composite slumped 185 points, or 2.8%, to 6,535 in early Monday trade, marking a fifth straight decline and the weakest level since mid-2025. A sharp Wall Street selloff on Friday weighed on sentiment, compounded by fears of escalating Middle East conflict and potential oil supply shocks. Weak activity in top trading partner China added more pressure, as industrial output and retail sales growth were at multi-year lows in April. Locally, focus turns to Bank Indonesia’s policy meeting this week, with growing speculation of a rate hike to 5% from the current 4.75% to support the rupiah, which has repeatedly hit record lows since April and now hovers above IDR 17,600 per USD. Meanwhile, President Prabowo urged calm, saying rural villagers do not use U.S. dollars, and Finance Minister Purbaya remains confident. Losses were broad-based, with major decliners including Amman Mineral Intl. (-12.7%), Aneka Tambang (-7.4%), Indosat (-6.3%), and Vale Indonesia (-5.1%).