FX.co ★ Indonesian Stocks Ease Ahead of BI Rate Decision

Indonesian shares fell 39 points, or 0.6%, to 6,410 in early Wednesday trading, erasing gains from the previous two sessions as sentiment weakened on the back of Wall Street’s overnight selloff in semiconductor stocks, persistently high bond yields, and rising oil prices. Domestic caution intensified amid the impact of recent natural disasters, mounting doubts over the 2027 budget assumptions, and delays in the rollout of electric motorcycle incentives. Investors were firmly focused on Bank Indonesia’s policy decision later in the day—its first under Acting Governor Destry Damayanti—with interest rates widely expected to be kept on hold after a cumulative 100 bps of hikes since May. Market participants are increasingly alert to how she will navigate the trade-off between currency stability and President Prabowo Subianto’s growth-driven agenda. Losses were broad-based across sectors, led by energy, cyclicals, and basic materials, although gains in property stocks helped cap the overall decline. Notable underperformers included MNC Tourism (-2.9%), Bank Jago (-2.6%), Pertamina Geothermal Energy (-2.3%), and Alamtri Minerals (-2.1%).