Indonesian equities opened September on a strong footing, with the IDX Composite Index rising 34 points, or 0.6%, to 6,561 in early trade, extending the previous session’s gains. The advance was broad-based, led by healthcare, industrials, and financials, as sentiment drew support from credible fiscal plans anchored by the proposed 2.40% budget deficit target for 2027. Budget execution remained robust through July, with state revenue up 21.3% year-on-year and expenditure increasing 18.2%.
Externally, sentiment was aided by stronger factory activity in China, Indonesia’s largest trading partner, where manufacturing expanded for a ninth consecutive month in August, reinforcing optimism over external demand. Even so, investors stayed cautious ahead of key domestic data releases due later in the day, including August inflation and July trade figures.
U.S. stock futures were mostly lower following overnight declines on Wall Street, although the major indices still managed to post gains for the month. Notable early movers in Jakarta included Bumi Resources (up 3.1%), Bank Rakyat Indonesia (2.5%), Charoen Pokphand (2.4%), and Bank Mandiri (2.1%).
