Indonesian Equities Hit Five-Week High as BI Holds Rates, Fiscal Cuts Loom

2026-07-23 02:54 By Farida Husna 1 min. read

Indonesian stocks jumped 73 points or 1.2% to 6,405 in early deals on Thursday, marking a five-week peak after a modest dip the day before.

Sentiment improved as Bank Indonesia held its benchmark rate steady at 5.75%, pausing after a cumulative 100bps of hikes since May, while unveiling fresh incentives to attract foreign inflows.

On the fiscal side, the government has trimmed its free school meals budget to IDR 229 trillion from IDR 268 trillion, with Finance Minister Purbaya Yudhi hinting defense allocations may also be pared back to prioritise poverty reduction.

However, gains were capped by weaker U.S.

futures and higher oil prices, after President Trump threatened strikes on Iranian infrastructure in response to potential shipping attacks in the Strait of Hormuz.

Still, all major sectors advanced, led by technology, energy, basic materials, and non-cyclicals.

Standout movers included Darma Henwa (8.6%), Petrosea (6.4%), Erajaya Swasembada (5.0%), and Raharja Energi Cepu (4.9%).



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Indonesian Equities Hit Five-Week High as BI Holds Rates, Fiscal Cuts Loom
Indonesian stocks jumped 73 points or 1.2% to 6,405 in early deals on Thursday, marking a five-week peak after a modest dip the day before. Sentiment improved as Bank Indonesia held its benchmark rate steady at 5.75%, pausing after a cumulative 100bps of hikes since May, while unveiling fresh incentives to attract foreign inflows. On the fiscal side, the government has trimmed its free school meals budget to IDR 229 trillion from IDR 268 trillion, with Finance Minister Purbaya Yudhi hinting defense allocations may also be pared back to prioritise poverty reduction. However, gains were capped by weaker U.S. futures and higher oil prices, after President Trump threatened strikes on Iranian infrastructure in response to potential shipping attacks in the Strait of Hormuz. Still, all major sectors advanced, led by technology, energy, basic materials, and non-cyclicals. Standout movers included Darma Henwa (8.6%), Petrosea (6.4%), Erajaya Swasembada (5.0%), and Raharja Energi Cepu (4.9%).
2026-07-23
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%).
2026-07-22
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%).
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