Indonesia Shares Hold Cautious Upside

Indonesian equities inched higher on Tuesday morning deals, with the IDX Composite adding 12 points or 0.2% to 5,927, extending efforts toward a fifth straight gain after Wall Street’s upbeat tone and a record Dow close overnight, ahead of the Federal Reserve's June meeting minutes. Local sentiment found some lift from the House Budget Committee’s proposal to trim the 2027 free meal program to bolster fiscal efficiency. That said, labor concerns in the digital sector tempered optimism as TikTok Indonesia faced allegations of layoffs linked to the e-commerce platform Tokopedia. Traders also kept a wary eye on June forex reserves due later today, following five consecutive monthly declines to a near two-year low in May. Meanwhile, CPI and PPI figures in main trading partner China also loom. Early movers included Barito Pacific (3.7%), Semen Indonesia (3.6%), Japfa Comfeed (1.5%), and Astra International (1.3%), underscoring selective buying amid broader caution.

Indonesian shares extended gains Monday, rising 39 points or 0.7% to 5,916 in early trade, marking a fourth straight advance and a one-week high. Sentiment was supported by stronger U.S. futures after Wall Street’s solid week, with investors eyeing minutes from the Federal Reserve’s June meeting due later this week. Local confidence was also lifted by reports that authorities are trimming further allocations for President Prabowo’s free meal program to ease fiscal strain, including reducing distribution to four days a week from previously five. On the monetary side, recent rate hikes by Bank Indonesia have steadied the rupiah, though Fitch warned that prolonged foreign reserves declines could weigh on Indonesia’s credit ratings. Gains were broad-based, led by basic materials, energy, and technology, though caution lingered ahead of China’s CPI and PPI data. Standout movers included Energi Mega Persada (4.7%), TBS Energi Utama (4.3%), Indika Energy (3.1%), and MD Entertainment (3.0%).

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.