FX.co ★ Indonesia Shares Trade Lower as Inflation Accelerates

Indonesian shares fell 36 points, or 0.5%, to 6,566 in Wednesday morning trade, snapping a two-day winning streak, as most U.S. equity futures softened following Wall Street’s third consecutive decline amid surging bond yields and oil prices. Domestically, headline inflation accelerated to 3.19% in August from July’s three-month low of 2.28%, slightly above forecasts, driven largely by higher food prices linked to El Niño, while core inflation climbed to its highest level since March 2023. Even so, the downside was partly cushioned by an unexpected trade surplus in July, supported by stronger-than-expected exports. Separately, newly appointed Bank Indonesia Governor Destry Damayanti projected GDP growth of 5.2%–6% in 2027 and forecast the rupiah at 17,300–17,800 per US dollar next year. Sector-wise, infrastructure, energy, and non-cyclical stocks dragged the market lower, with notable decliners including Petrindo Jaya Kreasi (-3.9%), Vale Indonesia (-2.8%), Alamtri Minerals (-2.7%), and Kalbe Farma (-1.9%).