Indonesia Equities Recover from Three-Week Low

Indonesia’s IDX Composite climbed 60 points, or 1.1%, to 5,703 on Wednesday afternoon, snapping a three-day losing streak on the first trading day of July, as bargain hunters returned after domestic markets hit a three-week low. The benchmark index swung from early weakness, with buying pressure spreading across basic materials, energy, and infrastructure. Sentiment improved after the government cut industrial LNG prices to ease costs, while President Prabowo prepared to launch the B50 biodiesel mandate to strengthen energy independence. Traders looked past May’s weak trade data, which showed the first deficit since April 2020 on falling exports and firm imports. Meanwhile, inflation hit a three-month high in June but stayed within Bank Indonesia's target band. In the U.S., Wall Street posted strong gains during H1 of 2026, boosted by chip stocks. Among local standouts were Petrindo Jaya Kreasi (13.2%), Merdeka Battery Materials (6.5%), Vale Indonesia (6.1%), and Medco Energi (3.9%).

Indonesian shares edged down in volatile trading on the first day of July, hovering around 5,613 in morning trade and lingering at a three-week low. A sharp drop in U.S. futures weighed on sentiment after Wall Street capped its strongest quarter in six years overnight, with fallout from the Iran war and swings in chip stocks keeping volatility high. Locally, caution built ahead of June inflation and May trade data due later today. Inflation in May accelerated toward the upper end of Bank Indonesia’s target of 1-1/2% to 3-1/2%, while April’s surplus narrowed to its smallest since 2020 as imports outpaced exports. Still, losses were cushioned by measures to cut industrial LNG prices, supporting energy affordability. Meanwhile, foreign inflows into government bonds and BI securities strengthened, reaching about USD 9 billion through end-June. Notable laggards included Charoen Pokphand (-7.1%), United Tractors (-3.9%), Pertamina Geothermal Energy (-3.3%), and Bank Tabungan Negara (-2.3%).

Indonesia's IDX Composite tumbled 160 points or 2.8% to 5,659 in early deals on Tuesday, slipping for the third session to hit its lowest in three weeks. All sectors were under heavy selling pressure, with basic materials, energy, and infrastructure among top laggards. Notable decliners included Hartadinata Abadi (-8.5%), Astra Intl. (-4.7%), Bank Central Asia (-4.2%), and Aneka Tambang (-3.7%). The market is poised for a seventh straight monthly fall, down 7.5% so far, extending into a second successive quarterly loss of near 20%. Pressures stemmed from widening current account and budget deficits, a shrinking trade surplus, and foreign reserves at a two-year low, while the rupiah continued to notch record lows. Inflation in May was near the upper band of Bank Indonesia’s target, led by food prices. Sentiment was also rattled by new legislation granting blanket legal immunity for buying bonds issued by state investment fund Danantara, raising concerns over governance and transparency.