FX.co ★ Indonesian Shares Track First Weekly Decline in a Month

Indonesia’s IDX Composite fell 23 points, or 0.4%, to 6,282 in early Friday trading, extending losses from the previous session as transport, healthcare, and financial stocks dragged on sentiment. Investors remained cautious ahead of President Prabowo’s address to parliament later today on the 2027 budget, which is expected to emphasize consumption despite declining approval ratings and investor concerns over restrictions on commodity exports. Attention also turned to Bank Indonesia’s policy meeting next week, its first since the abrupt departure of Governor Perry Warjiyo, and following a cumulative 100 bps of rate hikes between May and June. At the same time, MSCI’s August index review continued to pressure local equities after confirming no new inclusions and 11 deletions, effective after August 31. Among the notable decliners were Mitra Adiperkasa (-2.3%), Indika Energy (-1.6%), Bank Central Asia (-1.2%), and Bumi Resources (-1.1%). For the week, the domestic market is on track to snap a three-week winning streak, down about 0.4% so far.