Indonesian stocks climbed 40 points, or 0.7%, to 5,367 in Thursday morning trade, rising for a third consecutive session as gains spread across most sectors. Sentiment was supported by Bank Indonesia’s decision to keep its key policy rate unchanged at 5.75% for a fourth straight month while lifting its deposit facility rate by 25 basis points to bolster the rupiah. The central bank also announced a gradual reduction in the reserve requirement ratio (RRR) starting November 1, a move expected to inject around IDR 190 trillion into the banking system.
Upside was limited, however, after President Prabowo criticized MSCI for proposing to strip Indonesia of its emerging-market status and reclassify it as a standalone market, warning that such a change could erode investor confidence. At the same time, U.S. equity futures softened amid ongoing worries about the payoff from heavy technology spending.
Non-cyclical stocks, energy, healthcare, and financials led the advance. Merdeka Battery Materials gained 4.0%, Aneka Tambang rose 3.3%, and Telkom Indonesia added 1.9%, emerging as early leaders. The country’s four largest banks rallied between 1.8% and 2.5%.
