Indonesia Stock Rise for 3rd Session Ahead of Midweek Break

Indonesian equities rose 25 points, or 0.4%, to 6,230 in early Tuesday trade, marking a third straight advance as U.S. futures rallied after President Donald Trump said Monday that Iran talks were “proceeding nicely,” though he warned Washington could act offensively if they collapse. Domestically, monetary policy is tilting toward rupiah stability and market confidence, with Bank Indonesia last week raising interest rates by 50bps to 5.25%, its first hike since October. The government also reportedly delayed royalty and export-duty changes to safeguard downstream competitiveness amid weaker global demand conditions and rising uncertainty. Gains were led by basic materials, infrastructure, and energy, while non-cyclicals, financials, and property lagged. Standouts included Barito Pacific (10.8%), Rukun Raharja (4.6%), Harum Energy (3.2%), and Indo Tambangraya Megah (2.2%). Markets will pause on Wednesday and Thursday for public holidays.

Indonesia’s IDX Composite edged up to 6,168 in Monday morning trade, extending gains from the prior session as U.S. stock futures jumped on easing oil prices after President Trump signaled progress in Iran talks. Trump also said he wants Kevin Warsh to independently lead the Fed following the recent shakeup at the U.S. central bank. Locally, Bank Indonesia last week raised borrowing costs aggressively, underscoring its focus on rupiah stabilization. Gains, however, were capped by a sharply wider Q1 current account deficit, reflecting a narrowing trade surplus and softer global demand. Concerns also mounted after President Prabowo moved to establish a centralized export agency, raising fears of higher costs for listed firms. Transport, cyclicals, and property led advances, though energy and basic materials weighed. Notable movers included Surya Citra Media (4.5%), Bank Rakyat Indonesia (3.0%), Bukit Asam (2.6%), and United Tractors (1.5%).

Indonesian equities edged down 10 points, or 0.2%, to 6,085 in Friday morning trade, extending losses for a ninth straight session and lingering around their weakest level since April 2025. Selling pressure persisted after President Prabowo’s move to establish a centralized export agency, raising concerns over higher costs for listed firms, though ones with high domestic exposure are likely to be more resilient. Fitch Ratings also kept a negative outlook on domestic banks, citing sovereign risks. Still, a rise in U.S. stock futures helped limit further losses. Non-cyclicals, financials, and property led the fall, with major decliners including Kawasan Industri Jababeka (-8.2%), Petrindo Jaya Kreasi (-4.7%), Telkom Indonesia (-3.7%), and Astra Intl. (-3.6%). Markets are on track for a second weekly drop, down almost 10% so far and about 30% ytd. Traders now await Q1 current account data due later today, after the previous release showed a swing into deficit on a widening oil trade gap.