Indonesia Stocks Extend Decline

Indonesian shares slipped 21 points, or 0.3%, to 6,482 in early Wednesday trade, marking the second straight session of losses as investors returned from a holiday. Sentiment was dampened by weaker U.S. equity futures ahead of Nvidia’s earnings, while Washington weighed fresh trade measures against Canada. Locally, the Indonesian bourse announced plans to cut the minimum share price limit from IDR 50 to IDR 1 by September 7, a move aimed at boosting liquidity but prompting caution among traders about potential asset impacts. Meanwhile, several key domestic data will be due next week, including August inflation and July trade performance. Still, losses were partly cushioned by strong July digital transaction volumes, with rapid adoption of QRIS payments by Bank Indonesia supporting optimism. Sectoral pressure came from transport, energy, and property, with notable laggards including Indosat (-3.4%), Medco Energi (-2.9%), Bank Rakyat Indonesia (-1.6%), and Charoen Pokphand (-1.0%).

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 Digital (2.9%), Indika Energy (2.2%), and Aneka Tambang (1.9%). Markets will be closed Tuesday for a holiday.

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.