Indonesian shares climbed 0.4% to 5,302 on Wednesday afternoon, rebounding from earlier losses as investors digested Bank Indonesia’s latest policy moves. The central bank kept its benchmark rate unchanged at 5.75% for a fourth consecutive month, but raised the deposit facility rate by 25 basis points to 5% and improved incentives for DNDF hedging in a bid to attract foreign capital.
To support liquidity, the board cut the reserve requirement ratio by 1 percentage point to 8% effective November 1, with a further reduction to 7% from December 1. The move is expected to inject about IDR 190 trillion into the financial system. Governor Destry Damayanti noted that the cumulative 100-basis-point rate hikes earlier this year had helped anchor inflation expectations, even as El Niño continues to exert pressure on food prices.
At the same time, U.S. stock futures advanced as worries over AI-related investment cooled. In Jakarta, gains were led by healthcare, property, consumer non-cyclical, and infrastructure stocks. AKR Corp. surged 6.2%, while Indofood Sukses Makmur gained 4.8% and Indosat Tbk rose 4.1%. The four major banks added between 0.3% and 1%.
