Stocks in Jakarta Kick Off September with Broad Gains

Indonesian equities opened September on a firm note, with the the IDX Composite Index up 34 points or 0.6% to 6,561 in early trade, extending gains from the prior session. Strength was broad-based, led by healthcare, industry, and financials, as sentiment drew support from fiscal credibility anchored by the proposed 2.40% deficit target for 2027. Budget execution through July also remained solid, with revenue up 21.3% yoy and expenditure rising 18.2%. Externally, factory activity in top trading partner China accelerated, expanding for a ninth straight month in August, bolstering optimism. However, caution lingered ahead of key domestic releases later today, including August inflation and July trade data. Meanwhile, U.S. stock futures were mostly lower after overnight losses on Wall Street, though major indices still managed monthly advances. Early movers included Bumi Resources (3.1%), Bank Rakyat Indonesia (2.5%), Charoen Pokphand (2.4%), and Bank Mandiri (2.1%).

Indonesian shares fell 27 points, or 0.4%, to 6,487 in Monday morning trade, extending weakness from the prior session. A sharp drop in U.S. futures weighed on sentiment after Fed Chair Kevin Warsh’s hawkish Jackson Hole remarks lifted odds of a September hike, while oil prices surged following U.S. strikes on Iranian rocket launchers over the weekend. Locally, caution persisted ahead of key releases this week, including August inflation and July trade data. Still, losses were cushioned by news that the House of Representatives approved Destry Damayanti as Bank Indonesia’s new governor for 2026–2031, succeeding Perry Warjiyo, who resigned in July. Basic materials, health, and infrastructure led the decline, with notable laggards including Hartadinata Abadi (-4.7%), Merdeka Copper Gold (-3.0%), and Aneka Tambang (-1.6%). Still, markets are heading for the second straight monthly gain, up near 4%, lifted by continued bargain hunting after markets hit their lowest in six years in June.

Indonesia’s IDX Composite rose 38 points, or 0.6%, to 6,558 in early Friday trade, extending momentum from the prior session after Wall Street’s overnight strength buoyed sentiment. Investors awaited signals on the Fed’s rate path from Chair Kevin Warsh’s debut Jackson Hole speech later today. Locally, confidence was steadied by Thursday’s orderly protest in Jakarta, with no major security disruptions. At the same time, attention turned to the House of Representatives’ expected announcement on the Bank Indonesia governor candidate. Upside was tempered, however, by caution ahead of next week's August inflation data, with El Niño risks fueling concern over food prices, while July trade figures are also due. Energy, financials, and non-cyclicals led gains, with Petrindo Jaya Kreasi (4.3%), Elang Mahkota Teknologi (2.0%), Bank Central Asia (1.2%), and Sumber Alfaria Trijaya (1.1%) among standouts. For the week, the market is poised for a second straight rise, up about 0.4% so far.