Indonesian Stocks Rise Modestly Ahead of Q2 GDP Data

Indonesian shares added 16 points or 0.3% to 6,251 in early trade on Tuesday, reversing a subdued session the day before as most sectors advanced, notably property, basic materials, and non-cyclicals. Sentiment was supported by stronger U.S. stock futures following an overnight rally on Wall Street that pushed the Dow Jones to a record high, aided by lower oil prices and sharp gains in major tech stocks. Locally, July annual inflation eased to a three-month low of 2.88% as food supplies improved despite El Niño risks. Meanwhile, manufacturing showed tentative recovery with July PMI at a five-month high. Gains, however, were capped by a second consecutive month of trade deficit in May, with imports outpacing exports. Caution also lingered ahead of Q2 GDP data, due on Wednesday, as markets expected slower growth after last quarter’s 5.6% surge. Leading performers included Merdeka Copper Gold (5.1%), Vale Indonesia (1.9%), Indosat (1.6%), and Bank Negara Indonesia (1.2%).

Indonesian stocks edged up 18 points or 0.3% to 6,256 on the first trading day of a new month, rising for the third session amid a rally in U.S. equity futures after President Trump said on Sunday he canceled a planned attack on Iran. Meanwhile, fresh data showed factory activity grew in July, with Indonesia's S&P Global Manufacturing PMI hitting a five-month high of 50.2 following a slump in June. Meanwhile, domestic fundamentals remained broadly resilient, supported by fiscal expenditure, credit expansion, and infrastructure development. In top trading partner China, the central bank signaled it will continue monetary support in H2 of 2026, pledging to maintain ample liquidity and adjust policy tools as needed. However, gains were capped by caution ahead of key data releases this week, including July inflation and May trade prints later today, and Q2 GDP in coming days. Amman Mineral Intl. gained 6.6%, followed by Mitra Adiperkasa (6.1%), Darma Henwa (3.5%), and Harum Energy (3.0%).

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.