Indonesia Equities Jump for Second Day

Indonesian shares surged 149 points, or 2.6%, to 5,895 on Wednesday morning deals, extending the prior session’s rally amid broad gains across major sectors. The local market moved further off last week’s six-year low as investors welcomed Bank Indonesia’s surprise 25bp rate hike to 5.5% Tuesday, aimed at stabilising the rupiah after repeated record lows. Confidence was further reinforced by sovereign wealth fund Danantara’s pledge not to take profit margins on strategic commodity exports and to honor existing contracts under the new centralization framework. In top trading partner China, annual inflation held steady at 1.2% in May, reflecting stable consumer demand. However, sentiment was tempered by a 32% rise in domestic non-subsidized fuel prices, effective today, as energy-import costs rise amid elevated global crude and a weaker currency. Standout performers included Barito Pacific (14.2%), Bank Negara Indonesia (8.6%), Bank Central Asia (7.3%), and Pertamina Geothermal (4.2%).

Indonesia’s IDX Composite bounced back 64 points or 1.2% to 5,405 in early Tuesday trade, halting a five-session slide as bargain hunters stepped in after the index touched its weakest since late 2020 in the prior session. The recovery came despite lingering geopolitical tensions, domestic macro pressures, and concerns over external buffers. Sentiment brightened after reports showed that tax revenue surged in the first five months of 2026, with the government hailing it as evidence of economic recovery. Bank Indonesia also noted strong growth in adjusted base money (M0), which rose over 14% for a second straight month. Gains were broad-based, led by basic materials, infrastructure, and industry. Standout movers included Telkom Indonesia (10.2%), Sumber Alfaria Trijaya (6.9%), Aneka Tambang (4.0%), and Bank Tabungan Negara (2.4%). Traders now look to May trade data from China, Indonesia's top trading partner, due later today, for further cues on regional demand and commodity flows.

Indonesian shares plunged 140 points, or 2.5%, to around 5,457 in Monday morning trading, marking the fourth straight session of losses and notching their lowest level since November 2020. The sell-off tracked declines across regional peers after reports of an Iranian missile strike on Israel reignited fears over the fragile ceasefire between Washington and Tehran. Domestically, heavy capital outflows deepened as the market has now plunged more than 30% this year. Meanwhile, the rupiah repeatedly slid to record lows amid investor unease over President Prabowo’s expansive spending agenda and surging fuel subsidies tied to the Middle East war. Weekend assurances from the central bank chief and finance minister to raise yields on local assets failed to stem the rout. Losses were broad-based, led by transport, energy, industrials, and cyclicals. Major laggards included MD Entertainment (-12.1%), Impack Pratama Industries (-10.5%), Vale Indonesia (-9.8%), and Hartadinata Abadi (-8.0%).