Indonesian Stocks Rebound

Indonesian shares rose 51 points or 0.8% to 6,319 in early deals on Wednesday, halting losses in the prior two sessions amid widespread gains across major sectors led by infrastructure, energy, basic materials, and cyclicals. sentiment improved following fresh data showing July car sales surged 33%, hinting at recovery in the automotive sector. Traders also took note of President Prabowo’s nomination of acting BI Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, a move seen as providing policy continuity. Still, upside was tempered by overnight weakness on Wall Street and caution ahead of MSCI’s August 2026 Review later today, with rebalancing effective after August 31. Domestic concerns also lingered as retail sales fell for a third straight month in June, weighed by softness in discretionary categories. Standout movers included Indosat (8.4%), Petrindo Jaya Kreasi (5.6%), Bumi Resources (2.8%), and Japfa Comfeed (1.8%).

Indonesian stocks lost 30 points or 0.5% to 6,36 on Tuesday morning trade, extending losses from the prior session and edging toward their weakest level in a week. A negative lead from Wall Street overnight weighed on sentiment amid rising oil prices on uncertainty about when the Strait of Hormuz could reopen. Traders also turned cautious ahead of domestic retail sales data due later today, following May’s sharp drop driven by higher non-subsidised fuel costs. Added caution stemmed from the upcoming MSCI August 2026 Review, set for August 12, with rebalancing changes effective after August 31. Still, losses were partly capped by President Prabowo’s nomination of acting Bank Indonesia Governor Destry Damayanti as the sole candidate to succeed Perry Warjiyo, easing leadership concerns. Energy, financials, and non-cyclicals dragged, while transport and basic materials lent modest support. Major laggards included Mitra Adiperkasa (-3.4%), Bumi Resources (-2.1%), and Bank Central Asia.

Indonesia’s IDX Composite pared morning gains on Monday afternoon, hovering near 6,417 amid weak domestic fundamentals, with July’s consumer confidence slipping for a third month to a 15-month low, underscoring concerns over economic conditions and job prospects. Caution also grew ahead of June's retail sales data due Tuesday, following a notable contraction in May, reflecting elevated inflation and higher non-subsidised fuel prices. Externally, Dow futures eased ahead of key U.S. inflation data later this week, while geopolitical tensions flared as Iran pressed Washington for war-damage compensation in peace talks. On the central bank front, President Prabowo Subianto nominated acting Bank Indonesia Governor Destry Damayanti as the sole candidate. State Secretary Prasetyo Hadi confirmed the submission to parliament, a process expected to take weeks. Notable movers included ESSA Industries (7.1%), Merdeka Copper Gold (4.1%), United Tractors (2.5%), and Bumi Resources (1.6%).