Indonesian shares fell 42 points, or 0.7%, to 6,332 in Thursday morning trade, reversing the previous session’s rally as U.S. futures declined following an overnight drop on Wall Street. The pullback in U.S. equities came amid a surge in U.S. Treasury yields, which reignited inflation concerns.
On the domestic front, economists cautioned that Bank Indonesia’s decision in September to leave benchmark rates unchanged for a third consecutive month may prove to be only a temporary pause. External risks remain elevated, driven by higher global yields, volatile oil prices, and persistent geopolitical tensions.
Policymakers are also contending with slowing economic growth, subdued household consumption, and fragile market sentiment, all against a backdrop of a rupiah that remains vulnerable to renewed dollar strength and potential foreign capital outflows. Even so, the market’s losses were partially cushioned by robust loan growth, with August lending data hovering near a 12-year high.
Declines were broad-based, led by basic materials, healthcare, and property stocks. Among the notable losers were Bumi Resources (-3.1%), Pertamina Geothermal (-2.3%), and Indika Energi (-1.8%).
