Indonesian Stock Momentum Builds as Monthly Turnaround Looms

Indonesian equities rose 42 points, or 0.7%, to 6,227 in early Friday trade, extending prior gains following an overnight rebound on Wall Street as chipmakers recovered from recent weakness. Locally, sentiment was lifted by the constitutional court’s ruling that financing for free meals should not come from the education budget, a move seen as reinforcing governance reforms tied to President Prabowo’s flagship program. Upside was capped, however, by caution ahead of key data releases next week, including inflation, trade performance, and Q2 GDP. In China, Indonesia’s largest trading partner, Beijing will stick to existing policy tools rather than unveil sweeping stimulus, keeping growth concerns in play. Gains were broad-based, led by basic materials, energy, and healthcare. Notable movers included Surya Citra Media (5.1%), Darma Henwa (4.4%), and Astra Intl (2.5%). The market is on track for a fourth straight weekly rise, setting up the first monthly gain after six periods of drop.

Indonesian stocks rose 43 points or 0.7% to 6,135 on Thursday morning trade, reversing declines in the prior six sessions as U.S. equity futures strengthened after Wall Street tumbled overnight amid persistent concerns over U.S. inflation. The Fed kept interest rates unchanged for a seventh straight month, but three of the central bank’s 12 voting officials dissented in favor of a rate increase. Locally, President Prabowo directed El Niño preparedness to mitigate drought and forest fire risks while reinforcing energy security and industrial resilience. Gains, however, were capped by uncertainty over central bank succession, regional fiscal strains, and mineral export bottlenecks. Traders are also bracing for key domestic data next week, including July inflation, May trade, and Q2 GDP. All sectors gained, led by basic materials, cyclicals, energy, and property. Early movers included Vale Indonesia (7.8%), Bumi Resources Minerals (4.3%), Archi Indonesia (3.8%), and Indika Energy (3.5%).

Indonesian shares slipped 50 points or 0.8% to 6,078 in early deals on Wednesday, retreating for the sixth straight session as market sentiment remained deeply downbeat. Investor caution persisted following the sudden exit of Perry Warjiyo from his post as central bank governor, even as the Cabinet Secretary's office pledged a transparent transition in line with the law. Meanwhile, the government’s ability to contain job losses was in doubt amid rising layoffs. Globally, U.S. stock futures weakened following a mixed session on Wall Street overnight, ahead of key corporate earnings releases and the Fed's interest rate decision later today. Still, losses were capped by reports that Jakarta is negotiating with the U.S. for a tariff exemption on palm oil under the new 10% tariff regime to protect export competitiveness. Among notable laggards were Surya Citra Media (-2.5%), Aneka Tambang (-2.1%), and Alamtri Minerals (-1.4%), and Hartadinata Abadi (-1.1%).