Indonesian Stocks Ease Ahead of BI Rate Decision

Indonesian shares slipped 39 points or 0.6% to 6,410 in early Wednesday trade, reversing gains from the prior two sessions as Wall Street’s overnight selloff in semiconductors, elevated bond yields, and rising oil prices weighed on sentiment. Domestic caution deepened amid recent natural disasters, doubts over 2027 budget assumptions, and delays in electric motorcycle incentives. Market focus vigilantly turned to Bank Indonesia’s policy decision later today, its first under Acting Governor Destry Damayanti, with interest rates expected to stay unchanged after a cumulative 100 bps of hikes since May. However, traders remain increasingly watchful of how she balances currency stability against President Prabowo Subianto’s growth agenda. Sectoral losses were broad, led by energy, cyclicals, and basic materials, though property gains helped limit declines. Notable laggards included MNC Tourism (-2.9%), Bank Jago (-2.6%), Pertamina Geothermal Energy (-2.3%), and Alamtri Minerals (-2.1%).

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.