Indonesian Equities Rally After BI Rate Decision

Indonesian shares surged 69 points, or 1.1%, to 6,465 in early Thursday trade, rebounding from the prior session’s weakness with broad gains across major sectors. Sentiment was lifted after Bank Indonesia held its benchmark rate steady at 5.75% for a second month on Wednesday, in line with estimates, following cumulative hikes of 100bps since May. In main trading partner China, lending benchmarks were also left unchanged for a 15th straight month, with one- and five-year LPRs kept at record lows to support growth. However, caution lingered ahead of Q2 current account data due later this week, after Q1’s deficit widened to its largest since 2019 on weaker trade. Meanwhile, FTSE Russell said it will delay additions, upgrades, and weight increases for Indonesian stocks until at least its December review as it evaluates market reforms. Early standouts included Hartadinata Abadi (8.3%), Amman Mineral International (7.2%), Vale Indonesia (3.4%), and Aneka Tambang (3.3%).






