FX.co ★ Indonesia Stocks Rise to 4-Week High Ahead of BI Decision

Indonesian equities experienced a notable uptick, advancing by 31 points or 0.4% to reach 7,171 during early trading on Wednesday, marking the eighth consecutive session of gains. This rally was supported by expectations of potential interest rate cuts. As the Bank Indonesia monetary policy meeting approached, market participants widely anticipated a 25 basis point reduction in interest rates, bringing them down to 5.25%. Sentiment was further buoyed by U.S. President Donald Trump's announcement of a trade agreement with Indonesia the previous day. According to the deal, the U.S. will implement a 19% tariff on Indonesian imports starting August 1, a decrease from the previously threatened 32% in April. The IDX Composite Index achieved its peak since mid-June, with most sectors, including energy minerals, finance, and consumer durables, trading positively. However, concerns arose regarding global inflation pressures due to unexpectedly high U.S. inflation figures and Trump's threat of implementing 30% tariffs on the European Union and Mexico. Among the early gainers were Bank BRI with an increase of 0.8%, Indofood at 0.6%, Bank Mandiri at 0.4%, and BCA at 0.3%.