Indonesia Stocks Retreat on Global Jitters

Indonesian shares slipped 42 points, or 0.7%, to 6,332 in Thursday morning trade, reversing the prior day’s rally as U.S. futures fell after Wall Street ended lower overnight amid surging U.S. Treasury yields that stoked inflation fears. Locally, economists warned that Bank Indonesia’s move in September to hold benchmark rates steady for a third month may be only a temporary pause, with external risks still elevated from higher global yields, volatile oil prices, and geopolitical headwinds. Policymakers also face challenges from slowing growth, tepid household spending, and fragile market sentiment, particularly as the rupiah remains vulnerable to renewed dollar strength and foreign outflows. Still, losses were capped by resilient loan growth, with August figures near a 12-year peak. Declines were broad-based, led by basic materials, healthcare, and property. Notable laggards included Bumi Resources (-3.1%), Pertamina Geothermal (-2.3%), and Indika Energi (-1.8%).

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.