Indonesia Stocks Edge Higher, Set for Modest Weekly Rise

Indonesia’s IDX Composite added 18 points, or 0.3%, to 5,932 in early Friday trade, extending momentum from the prior session as Wall Street’s rebound overnight in chip stocks spilled over. Meanwhile, the IMF maintained its April projection for Indonesia’s economy to grow 5% in 2026, even as global uncertainty lingers. On local data, June car sales rose 12% yoy, marking a third consecutive monthly rise and lifting first-half sales 15.9% from a year earlier. Yet optimism was tempered by May retail data, which showed the steepest annual drop in three years as higher non-subsidized fuel prices weighed on consumer spending. Mining services also struggled in H1 2026, pressured by reduced production quotas under current work plans, with contractors awaiting revisions. Still, the market is on track for its first weekly gain in three weeks, up about 0.7% so far. Leading movers included Pertamina Geothermal Energy (3.7%), Vale Indonesia (2.8%), Darma Henwa (2.4%), and Aneka Tambang (2.1%).

Indonesian equities firmed modestly on Thursday morning, with the IDX Composite Index adding 14 points or 0.2% to 5,883, clawing back steep losses from the prior session. The rebound tracked stronger U.S. futures after Wall Street closed mostly lower overnight, weighed by renewed U.S.–Iran tensions and higher oil prices. Locally, sentiment was lifted by an uptick in June forex reserves and quicker state budget execution in H1 2026. In top trading partner China, headline inflation eased to 1.1% in June, undershooting forecasts as food costs fell further. However, gains in Jakarta were capped by concerns over a possible downgrade to frontier-market status in 2027, flagged by S&P Dow Jones Indices. Meanwhile, consumer sentiment slipped for a second month in June, hitting its weakest since last September. Basic materials, energy, transport, and industry led strength, with notable movers from ESSA Industries (4.6%), Amman Mineral Intl. (3.0%), Bumi Resources (2.2%), and Medco Energi (1.3%).

Indonesia’s IDX Composite slipped 72 points, or 1.2%, to 5,916 in early Wednesday trade, breaking a five-session winning streak. The decline tracked weaker U.S. equity futures as renewed Middle East tensions pressured sentiment, after the U.S. launched fresh airstrikes on Iran in response to attacks on ships in the Strait of Hormuz. Locally, a renewed risk of a downgrade to frontier market status, the rupiah depreciation, and a large budget deficit in H1 2026 highlighted mounting economic headwinds. At the same time, Indonesia's forex reserves edged higher in June, but they remained near a two-year low. All major sectors were in the red, led by basic materials, property, consumer cyclicals, and energy. Among notable decliners, Amman Mineral International dropped 4.2%, followed by Petrindo Jaya Kreasi (-3.9%), XLSmart Telecom (-3.5%), and Indah Kiat Pulp & Paper (-3.0%). Investors now await June consumer confidence data later in the day after May's reading fell to an eight-month low.