Indonesia Shares Extend Strength

Indonesian stocks jumped 57 points, or 1.0%, to 5,751 in early trading on Thursday, marking the second straight session of gains amid broad-based strength across major sectors. Markets moved further away from a three-week low as U.S. equity futures strengthened following indirect negotiations between the U.S. and Iran that began Tuesday in Doha. Locally, government policy support continued, including industrial LNG price cuts, food security programs, and capital market reform. However, gains were capped by fresh data showing Indonesia’s trade balance unexpectedly shifted to the deficit in May, the first gap since April 2020 as exports fell while imports surged. Meantime, inflation hit a three-month high in June due to elevated food prices. In other news, Fitch Ratings warned that a prolonged drop in forex reserves could place pressure on Indonesia's credit rating. Among standouts were Hartadinata Abadi (5.7%), Barito Pacific (4.7%), Elang Mahkota (3.7%), and Bank Central Asia (3.1%).

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%).