Indonesian Equities Extend Strength

Indonesian stocks climbed 63 points or 1.0% to 6,463 on Tuesday morning deals, building gains from the prior session as markets reopened after Monday's holiday. Sentiment was buoyed by optimism that economic output will stay resilient next year, supported by improved fiscal conditions, reforms in energy security, and capital-market transparency. Meanwhile, the central bank will begin its first policy meeting today, the first time since Perry Warjiyo’s departure last month, with hopes of continuity prospects growing under acting Governor Destry Damayanti, the sole nominee to lead Bank Indonesia. However, gains were limited by weaker U.S.equity futures following losses on Wall Street overnight oil prices rose as the US and Iran appeared no closer to a deal. Still, most sectors advanced, led by energy, basic materials, non-cyclicals, and industry. Among early standouts were Indika Energy (5.1%), Japfa Comfeed (4.7%), Bumi Resources 02.2%),and United Tractor (2.0%).

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. Markets will be closed Monday for a public holiday.

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.