Indonesian Equities Under Strain

Indonesia’s IDX Composite slipped 66 points, or 1.1%, to 5,876 in early Thursday trade, reversing the prior session’s modest gain as sentiment soured amid a global equity selloff. Chip stocks plunged, and faster-than-expected U.S. inflation stoked concern over further rate hikes, weighing on Asian markets. Locally, caution intensified ahead of MSCI’s November review of Indonesian equities, while the bourse added 19 names to its High Shareholding Concentration list. Still, losses were partly cushioned by the IMF’s decision to raise Indonesia’s 2026 growth forecast to 5.1% from 5.0%, citing support for household purchasing power and stronger government spending toward year-end. All sectors were in the red, led by energy, basic materials, transport, and property. Notable decliners included Indokripto Koin Semesta (-10.0%), Gojek Tokopedia (-7.1%), Mitra Adiperkasa (-6.4%), and Impack Pratama Industri (-5.5%).

Indonesian equities rose 43 points or 0.7% to 5,968 on Wednesday morning deals, reversing losses in the prior two sessions. Bargain hunters set in after markets fell to a three-month low, while U.S. stock futures strengthened ahead of the inflation data later today. Meanwhile, the IMF raised Indonesia's 2026 GDP growth projection to 5.1% from 5.0%, supported by ongoing efforts to lift household buying power and increased government spending. However, gains were capped by caution ahead of September trade data in main trading partner China. Meanwhile, Chinese producer prices rose the most in over four years in September, as higher fuel prices pushed up costs for businesses. Consumer inflation edged up to a three-month high of 0.9% but slightly below forecasts of 1%. All sectors contributed to the upturn, led by industrials, transport, property, and infrastructure. Among early standouts were Mitra Adiperkasa (4.2%), Medco Energi (3.4%), Bukit Asam (2.8%), and Bank Central Asia (1.7%).

Indonesia’s IDX Composite dipped 54 points, or 0.9%, to 5,884 in early Tuesday trade, marking the second straight session of losses and notching a four-month low. Sentiment weakened further as U.S. stock futures retreated after a Wall Street tech selloff overnight spilled into Asian markets ahead of key inflation data. Caution also prevailed ahead of CPI, PPI, and trade reports in top trading partner China later this week. Locally, concerns persisted over a pending Financial Services Authority probe into alleged price manipulation in energy stocks. Uncertainty surrounding MSCI’s review of Indonesian equities and persistent rupiah weakness added to the pressure. Losses were broad across cyclical stocks, basic materials, infrastructure, and energy, although selective buying in fundamentally strong companies helped temper the downside. Notable laggards included Indah Kiat Pulp & Paper (-5.5%), Japfa Comfeed (-5.0%), Perusahaan Gas Negara (-3.5%), and Bank Rakyat Indonesia (-2.3%).