Indonesian Market Eases as Week Begins

Indonesia’s IDX Composite fell 18 points or 0.2% to 6,511 in Monday morning trade, snapping a two-day advance as selling pressure weighed on transport, cyclicals, and tech. Sentiment was cautious as U.S. stock futures weakened ahead of a press briefing by U.S. Treasury Secretary Scott Bessent later today to outline additional sanctions on Iran. Locally, concerns over high borrowing costs resurfaced following a cumulative 100bps rate hike between May and June. At the same time, the current account deficit widened to a record high on shrinking goods surplus and rising energy import costs. Still, losses were partly offset by resilience in the digital economy, with Bank Indonesia reporting that QRIS (Quick Response Code Indonesian Standard) transactions surged 82.4% in July, underscoring rapid adoption of cashless payments. Early gainers included Hartadinata Abadi (3.4%), Solusi Energi Digital (2.9%), Indika Energy (2.2%), and Aneka Tambang (1.9%).

Indonesian stocks rose 26 points or 0.4% to 6,527 in Friday’s morning trade, extending gains to a three-month high after Thursday’s advance. Sentiment was lifted by stronger U.S. equity futures despite Wall Street’s overnight losses on rebounding Treasury yields and surging oil prices. Locally, July credit growth remained firm though businesses slowed borrowing amid uncertainty. Upside was capped by caution ahead of Q2 current account data due later today, after Q1’s deficit widened to its largest since 2019 on weak trade. Risks also linger from potential El Niño-driven food inflation, threatening purchasing power and confidence. Gains were broad-based, led by financials, infrastructure, and property, with Bank Rakyat Indonesia (2.2%), Sumber Alfaria Trijaya (1.8%), Indosat (1.5%), and Bank Mandiri (1.2%) among key movers. For the week, the market is on track for solid gains of about 1.9%, rebounding from last week’s modest decline.

Indonesian shares surged 69 points, or 1.1%, to 6,465 in early Thursday trade, rebounding from the prior session’s weakness with broad gains across major sectors. Sentiment was lifted after Bank Indonesia held its benchmark rate steady at 5.75% for a second month on Wednesday, in line with estimates, following cumulative hikes of 100bps since May. In main trading partner China, lending benchmarks were also left unchanged for a 15th straight month, with one- and five-year LPRs kept at record lows to support growth. However, caution lingered ahead of Q2 current account data due later this week, after Q1’s deficit widened to its largest since 2019 on weaker trade. Meanwhile, FTSE Russell said it will delay additions, upgrades, and weight increases for Indonesian stocks until at least its December review as it evaluates market reforms. Early standouts included Hartadinata Abadi (8.3%), Amman Mineral International (7.2%), Vale Indonesia (3.4%), and Aneka Tambang (3.3%).