Indonesian Stocks Sustain Upward Momentum

Indonesian shares rose 30 points, or 0.5%, to 6,261 in early trade on Tuesday, advancing for the ninth straight session and holding at their highest in a month. Stronger U.S. equity futures lifted sentiment amid hopes for a new U.S.-Iran ceasefire. Traders also welcomed the proposed Indonesia International Financial Center (PFII), where transactions would be conducted in foreign currency and English as an operating language, underscoring efforts to position Jakarta as a regional hub. However, gains were capped by caution ahead of Bank Indonesia’s policy decision, as the central bank began its two-day meeting today after raising rates by a total of 100bps between May and June to aid the rupiah. Rising oil prices added external pressure, stoking fiscal concerns despite H1 2026 budget execution staying broadly on track. Tech, energy, and transport led the strength, with notable movers from Bayan Resources (1.5%), Bank Rakyat Indonesia (1.3%), Timah Tbk. (1.1%), and Astra Intl. (1.0%).

Indonesian equities extended their winning streak into an eighth session on Monday morning, with the IDX Composite up 56 points or 0.9% to 6,231, hitting its highest level in a month. Gains were broad-based, led by property, energy, basic materials, and transport, underpinned by strong investment momentum. Foreign direct investment surged 27.4% yoy to a record in Q2 2026, reinforcing sentiment. In its main trading partner, China, the central bank held the loan prime rate steady for the 14th month at its July fixing, balancing growth support with currency stability. However, upside was capped by caution ahead of Bank Indonesia’s policy meeting this week, after a total 100bp of rate hikes in May–June to shore up the rupiah. Globally, Dow futures fell as Gulf tensions lifted oil and reignited inflation worries, despite softer U.S. CPI data last week. Standout movers included Petrindo Jaya Kreasi (4.0%), Bank Rakyat Indonesia (3.0%), Indah Kiat Pulp & Paper (2.6%), and Medco Energi (2.4%).

Indonesia’s IDX Composite fell 26 points or 0.4% to 6,0982 in Friday morning trade, snapping a six-session gain. Sentiment turned cautious as U.S. futures tumbled after a weak Wall Street session overnight led by chip losses, while traders parsed earnings updates. Locally, concerns resurfaced over external debt, which hit USD 444 billion in May, though officials maintain it is manageable. Markets also braced for Bank Indonesia’s policy meeting next week, with focus on whether a tightening bias holds after 100bp hikes in May–June. Basic materials, healthcare, and industrials weighed, amid weakness from Hartadinata Abadi (-3.3%), Aneka Tambang (-2.3%), AKR Corp. (-1.5%), and Alamtri Minerals (-1.0%). Still, the index is tracking a second weekly gain, up about 3%, on strong Q2 FDI growth, which rose at the fastest rate since Q4 2024, driven by downstream mineral investment. Meantime, the government plans stronger steps to stabilise food prices and curb inflation amid El Niño supply risks.