Indonesian equities advanced 63 points, or 0.8%, to 8,093 on Tuesday afternoon, extending the previous session’s gains as industrial, transport, and cyclical stocks led a broad-based rally. Market sentiment was supported by domestic data showing consumer confidence reached a 12‑month high in January, ahead of the Lunar New Year and Ramadan festive periods. Retail sales also increased for an eighth consecutive month in December, although the pace of growth moderated due to flood-related disruptions in several regions.
Investors largely looked past FTSE Russell’s decision to delay a scheduled index review, even after MSCI warned last month that Indonesia could face a downgrade to frontier-market status over data transparency issues. At the same time, caution persisted ahead of key CPI and PPI releases from China, Indonesia’s largest trading partner, due on Wednesday.
In a separate development, Moody’s revised the outlook for five major Indonesian banks to negative, following its downgrade of the country’s sovereign rating. Among notable gainers were Multipolar Technology, up 8.5%, Alamtri Minerals, up 5.3%, and Unilever Indonesia, which rose 3.9%.
