FX.co ★ Indonesian Stock Momentum Builds as Monthly Turnaround Looms

Indonesian equities climbed 42 points, or 0.7%, to 6,227 in early Friday trade, extending their advance after an overnight rebound on Wall Street as chipmakers recovered from recent weakness. Domestically, sentiment was supported by the Constitutional Court’s ruling that funding for the free meals program must not be drawn from the education budget, a decision viewed as bolstering governance reforms linked to President Prabowo’s flagship initiative.

Gains were tempered by caution ahead of key data releases next week, including inflation, trade figures, and Q2 GDP. Externally, growth concerns remained in focus after Beijing, Indonesia’s largest trading partner, signaled it would rely on existing policy tools rather than launch broad-based stimulus.

The advance was broad-based, led by basic materials, energy, and healthcare. Notable gainers included Surya Citra Media (up 5.1%), Darma Henwa (4.4%), and Astra International (2.5%). The market is on course for a fourth consecutive weekly increase, positioning it for its first monthly rise after six straight months of declines.