Indonesian Shares Track First Weekly Decline in a Month

Indonesia's IDX Composite slipped 23 points or 0.4% to 6,282 in early Friday trade, extending weakness from the prior session as transport, healthcare, and financials weighed on sentiment. Traders stayed guarded ahead of President Prabowo’s address to parliament on the 2027 budget later today, expected to lean on consumption despite sliding approval and investor unease over commodity export curbs. Focus also turned to Bank Indonesia’s policy meeting next week, its first since Perry Warjiyo’s sudden departure, following a cumulative 100bps of hikes between May and June. Meanwhile, MSCI’s August review kept pressure on equities after confirming no new inclusions and 11 deletions effective after August 31. Mitra Adiperkasa (-2.3%), Indika Energy (-1.6%), Bank Central Asia (-1.2%) and Bumi Resources (-1.1%) led decliners. For the week, local shares are set to break a three-week winning streak, down about 0.4% so far.

Indonesian equities slipped 58 points or 0.9% to 6,318 in Thursday morning trade, reversing a rally the day before. Losses were broad-based, led by basic materials, cyclicals, and healthcare. Sentiment soured after MSCI’s August review confirmed no new inclusions and 11 removals from its key indices, citing a strict global “freeze” policy. While Indonesia retains its Emerging Markets status, the weight of local equities has been trimmed, with changes effective after market close on August 31, 2026. Meanwhile, U.S.stock futures were mixed following Wall Street’s mostly higher close overnight, supported by softer inflation that eased Fed hike concerns. Domestically, downside was cushioned by reports that the government will reclaim part of state-company dividends to build a fiscal buffer fund. Notable laggards included ESSA Industries (-4.2%), Adaro Andalan (-2.8%), Merdeka Battery (-2.7%), and Sumber Alfaria Trijaya (-2.2%), underscoring the pressure across sectors.

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%).