Indonesian Shares Extend Slide Before BI Rate Decision

Indonesian stocks slipped 0.3% to 6,261 in early Wednesday trade, extending losses for a fourth straight session and notching their weakest level in six weeks. Sentiment was weighed down by FTSE Russell’s move to upgrade Vietnam to emerging-market status from frontier, spurring a rebalancing of regional flows. Caution also built ahead of Bank Indonesia’s policy decision later today, even as markets expect the benchmark rates to remain unchanged for a third month. Still, a further drop in oil prices eased inflation worries, reflecting progress in U.S.–Iran diplomatic talks and capping the market downside. President Prabowo, meanwhile, hailed the government’s completion of IDR 218 trillion in bond repayments to the central bank, closing obligations dating back to the 1997–98 Asian financial crisis. Losses were led by financials, tech, and property, with notable decliners Mitra Adiperkasa (-2.7%), Indosat (-2.1%), Alamtri Resources (-1.9%), and Indo Tambangraya Megah (-1.4%).

Indonesia’s IDX Composite fell 30 points, or 0.4%, to 6,354 in Tuesday morning trading, down for a third session as traders remained cautious ahead of Bank Indonesia’s policy decision. The central bank began its two-day meeting today amid renewed pressure on the rupiah and persistent price pressures. Meanwhile, lawmakers debated revisions to the 2003 Law that could allow higher budget deficits to fund social and welfare programs. Finance Minister Suahasil Nazara said any deliberations over the statutory 3% of GDP deficit ceiling should proceed constructively. Losses were partly capped by strong gains on Wall Street overnight, driven by optimism over Meta Platforms’ new AI agent. Easing Middle East supply concerns also offered some support as diplomatic efforts to end the U.S.-Iran conflict resumed. Bukit Asam (-2.3%), Bank Rakyat Indonesia (-1.8%), and Perusahaan Gas Negara (-1.3%) lagged. In contrast, Medco Energi (4.4%), Amman Minerals (3.4%), and Charoen Pokphand (2.3%) advanced.

Indonesian equities slipped 47 points, or 0.7%, to 6,392 in early Monday trade, extending previous losses as weakness in energy, infrastructure, and financials weighed on sentiment. Caution grew ahead of Bank Indonesia’s policy meeting later this week amid renewed rupiah pressure and signs of foreign outflows. Inflation risks also mounted on elevated oil prices and potential El Niño effects. Still, declines eased after the Finance Minister pledged refunds to taxpayers and businesses that overpaid, in line with regulations, while vowing to safeguard fiscal credibility and keep the deficit below 3% of GDP despite speculation of potential changes to the limit. In its main trading partner China, the central bank held key lending rates steady for a 16th month ahead of a bilateral summit between President Xi Jinping and U.S. President Donald Trump on September 24. Notable laggards included Adaro Andalan (-3.3%), XLSmart Telecom (-2.0%), Indosat (-1.7%), and Telkom Indonesia (-1.6%).