FX.co ★ Indonesia Stocks Retreat But Eye Solid Weekly Gain

Indonesia’s IDX Composite fell 26 points, or 0.4%, to 6,098.2 in Friday morning trade, ending a six-session winning streak. Risk appetite softened as U.S. equity futures declined following an overnight Wall Street pullback led by chipmakers, while investors digested a fresh round of corporate earnings.

On the domestic front, worries over external debt resurfaced after the total reached USD 444 billion in May, although authorities reiterated that the debt position remains manageable. Markets also turned cautious ahead of Bank Indonesia’s policy meeting next week, with attention on whether the central bank will maintain its tightening bias after delivering a cumulative 100 bp in rate hikes over May–June.

Sector-wise, basic materials, healthcare, and industrials dragged the index lower. Notable decliners included Hartadinata Abadi (-3.3%), Aneka Tambang (-2.3%), AKR Corporindo (-1.5%), and Alamtri Minerals (-1.0%).

Even so, the benchmark is still on track for a second consecutive weekly gain, up about 3%, supported by robust Q2 foreign direct investment, which grew at its fastest pace since Q4 2024, largely driven by downstream mineral projects. Meanwhile, the government is preparing stronger measures to stabilize food prices and contain inflation amid El Niño–related supply risks.