Indonesian equities slipped 55 points, or 0.9%, to 6,198 on Wednesday afternoon, snapping a three-session winning streak as weakness in the energy, industrial, transport, and financial sectors weighed on the benchmark. Early gains faded as sentiment turned cautious ahead of two closely watched MSCI assessments: the June 18 Global Market Accessibility Review and the June 23 Annual Market Classification Review, both considered pivotal for Indonesia’s inclusion and weightings in key global indices.
Adding to the cautious tone, Fitch Ratings highlighted rising credit risks for domestic commodity exporters under the country’s centralized export regime. Traders also positioned ahead of Thursday’s central bank meeting, where policymakers are expected to maintain a hawkish stance following 75 basis points of rate hikes since May, aimed at supporting the rupiah and containing inflation, though at the risk of dampening domestic demand.
Externally, investors were also watching the U.S., where markets awaited the first policy decision under new Federal Reserve Chair Kevin Warsh later in the day. Notable laggards on the Indonesian market included Petrindo Jaya Kreasi (-6.0%), Alamtri Minerals (-3.9%), Indo Tambangraya Megah (-3.4%), and Bank Tabungan Negara (-2.7%).
