Indonesian Equities Fall After Recent Gains

Indonesia’s IDX Composite slipped 30 points, or 0.5%, to 6,165 in Wednesday morning deals, snapping a three-day advance as losses hit infrastructure, property, and transport. Sentiment weakened after U.S. stock futures turned lower, retreating from fresh Wall Street highs overnight, ahead of the Fed's latest meeting minutes and policy remarks from officials. Locally, caution grew with September forex data due today, followed by consumer sentiment and August retail sales later this week. Meanwhile, the World Bank warned Indonesia is trailing Malaysia and Vietnam in capturing the global AI investment boom, though it noted resilience in household consumption and government spending. Regionally, markets in main trading partner China will reopen Thursday after the Golden Week break. Major laggards included Solusi Sinergi Digital (-2.8%), United Tractor (-2.5%), Surya Citra Media (-1.7%), and Bumi Resources (-1.1%).

Indonesian stocks rose 31 points or 0.5% to 6,152 in early Tuesday trading, extending gains for a third session as U.S. equity futures firmed on Wall Street’s AI optimism and buyout activity despite rising Treasury yields. Locally, the government is boosting social safety-net disbursements to support household purchasing power toward the end of the year. Regionally, markets in main trading partner China will reopen Thursday after the Golden Week break. However, caution ahead of key domestic releases this week, including September forex reserves and consumer sentiment, capped gains. Meanwhile, food inflation stayed elevated as harvest disruptions from severe weather, El Niño, and localised disasters lingered. Most sectors were higher, led by tech, energy, and transport. Gojek Tokopedia jumped 6.9%, followed by Bank Jago (3.9%), Medco Energi (1.8%), and Bank Tabungan Negara (1.4%). In contrast, Hartadinata Abadi (-1.4%), Mitra Adiperkasa (-1.3%), and Telkom Indonesia (-0.9%) lagged.

Indonesian shares rose 32 points, or 0.5%, to 6,070 in Monday’s morning session, building on gains from the prior session as softer U.S. jobs data lifted futures and eased pressure on the Fed to keep tightening. Bargain hunters continued to step in after local markets hit their lowest since mid-July. However, caution lingered ahead of key domestic releases this week, including September forex reserves, consumer sentiment, and August retail sales. Meanwhile, concerns persisted over Indonesia’s external vulnerabilities despite August’s trade surplus, with inflation risks growing after September CPI accelerated to 3.28%, edging closer to Bank Indonesia’s upper target band of 3-1/2%. In main trading partner China, markets remained shut for the Golden Week holiday, capping trading cues. Gains were broad across industry, transport, cyclicals, and basic materials. Early standouts included Rukun Raharja (7.8%), Kawasan Industri Jababeka (3.3%), Summarecon Agung (2.6%), and Jasa Marga (2.0%).