Indonesia Equities Rally, Weekly Change Almost Flat

Indonesia's IDX Composite soared 149 points or 2.6% to 5,894 on Friday morning deals, extending gains for the third straight session amid widespread strength across all sectors. A solid rise in U.S. stock futures boosted sentiment as traders dialed back expectations of a Federal Reserve rate hike after a lukewarm U.S. jobs report. Locally, investors welcomed government measures to lower industrial costs, protect jobs, and support strategic sectors. In top trading partner China, services activity remained robust in June amid easing cost pressures and positive business sentiment. Among outperforming stocks were Amman Mineral (8.6%), Vale Indonesia (8.3%), Indosat (6.6%), and Astra International (3.9%). For the week, local markets are little changed after logging a steep decline in the prior period. Traders now look ahead to key domestic releases next week, including June foreign-exchange reserves, consumer confidence, and May retail sales.

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%).