Indonesian Stocks Fall Sharply to Kick Off Week

Indonesian shares slipped 78 points, or 1.2%, to 6,461 in early Monday trade, extending losses for a fourth session to a two-week low. Sentiment weakened as U.S. futures fell amid surging oil prices after Saudi Arabia shut a key pipeline following drone attacks and postponed talks with Gulf states. Hotter-than-expected U.S. inflation also reinforced the case for higher rates. In China, Indonesia’s top trading partner, August activity data due Tuesday will cover industrial output, retail sales, and the surveyed unemployment. All major sectors retreated, led by basic materials, energy, infrastructure, and transport. Still, losses were partly capped by policy efforts to shore up confidence, including President Prabowo’s pledge to rein in the budget deficit and regulators’ moves to address MSCI’s transparency concerns ahead of its November review. Notable laggards included Merdeka Copper Gold (-4.9%), Darma Henwa (-2.9%), Aneka Tambang (-2.8%), and Barito Pacific (-2.1%).

Indonesian stocks slipped 90 points, or 1.4%, to 6,502 on Friday morning deals, retreating for the third session and hitting their lowest in two weeks. An overnight drop on Wall Street weighed on sentiment amid a surge in oil prices, while the latest U.S. producer inflation data reinforced bets on an imminent Fed interest-rate hike. Locally, concerns over oil prices above USD 100 per barrel added pressure, as Indonesia is a net oil importer, potentially straining fiscal conditions. Still, losses were capped by fresh data showing retail sales grew for the first time in four months during July, helped by government measures aimed at cushioning households from high cost pressures. All major sectors slipped, dragged by healthcare, cyclicals, basic materials, and transport. Charoen Pokphand (-3.7%), Japfa Comfeed (-3.0%), and ESSA Industries (-2.9%) were among major laggards. For the week, local markets are heading for a sharp drop, down around 2% after advancing in the prior period.

Indonesia’s IDX Composite inched lower, hovering around 6,665 in early Thursday trade and extending prior losses as Wall Street’s third straight drop overnight weighed on sentiment. Escalating U.S.–Iran tensions lifted Brent above USD100/bbl, stoking inflation fears. Simultaneously, U.S. Treasury yields surged despite a larger-than-usual USD 6 billion debt buyback. Locally, caution lingered over fiscal risks from high oil prices, though officials signaled the state budget stayed secure. Still, losses were capped by August consumer sentiment, which hit a three-month high, driven by stronger household finances and a brighter economic outlook. Financials, health, and non-cyclicals dragged the benchmark, though gains in energy, tech, and basic materials capped losses. Notable decliners included Japfa Comfeed (-2.1%), Indika Energy (-1.6%), Bank Rakyat Indonesia (-1.2%), and Unilever Indonesia (-0.6%). Traders now brace for July retail sales data after June marked a third monthly decline.