Indonesian equities fell 47 points, or 0.7%, to 6,392 in early Monday trading, extending prior-session losses as weakness in the energy, infrastructure, and financial sectors weighed on sentiment. Investor caution intensified ahead of Bank Indonesia’s policy meeting later this week amid renewed pressure on the rupiah and signs of foreign capital outflows. Inflation risks also increased, driven by elevated oil prices and potential El Niño-related impacts.
Losses later narrowed after the Finance Minister pledged to provide refunds to taxpayers and businesses that had overpaid, in line with existing regulations, while reiterating the government’s commitment to fiscal discipline and keeping the budget deficit below 3% of GDP.
In China, Indonesia’s main trading partner, the central bank left its benchmark lending rates unchanged for the 16th consecutive month, ahead of a bilateral summit between Chinese President Xi Jinping and U.S. President Donald Trump.
Notable laggards included Adaro Andalan (-3.3%), XLSmart Telecom (-2.0%), Indosat (-1.7%), and Telkom Indonesia (-1.6%).
