Indonesia Stocks Retreat But Eye Solid Weekly Gain

Indonesia’s IDX Composite fell 26 points or 0.4% to 6,0982 in Friday morning trade, snapping a six-session gain. Sentiment turned cautious as U.S. futures tumbled after a weak Wall Street session overnight led by chip losses, while traders parsed earnings updates. Locally, concerns resurfaced over external debt, which hit USD 444 billion in May, though officials maintain it is manageable. Markets also braced for Bank Indonesia’s policy meeting next week, with focus on whether a tightening bias holds after 100bp hikes in May–June. Basic materials, healthcare, and industrials weighed, amid weakness from Hartadinata Abadi (-3.3%), Aneka Tambang (-2.3%), AKR Corp. (-1.5%), and Alamtri Minerals (-1.0%). Still, the index is tracking a second weekly gain, up about 3%, on strong Q2 FDI growth, which rose at the fastest rate since Q4 2024, driven by downstream mineral investment. Meantime, the government plans stronger steps to stabilise food prices and curb inflation amid El Niño supply risks.





