Indonesian Shares Hover at 5-Week High

Indonesia's IDX Composite rose 0.4% to 6,365 in Wednesday morning trading, extending gains for a tenth session and lingering at its highest level in five weeks. A strong lead from Wall Street overnight lifted sentiment following solid earnings from major U.S. companies. Domestically, Indonesia's fiscal position remained solid, Finance Minister Purbaya Yudhi said, citing a stable credit outlook and a manageable budget deficit. However, the upside was limited ahead of Bank Indonesia's policy decision later in the day. The central bank is widely expected to raise its key interest rate by 25 bps to 6.0%, following a cumulative 100bps hike in May and June aimed at supporting the rupiah. Separately, public criticism mounted over government plans to involve military officers in collecting taxpayer data. Aneka Tambang climbed 2.3% after reports that BlackRock increased its stake in the miner. Other standouts were ESSA Industries (3.3%), Medco Energi (3.1%), and Merdeka Copper Gold (2.2%).

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%).