Indonesian equities extended their rally into a seventh consecutive session on Monday morning, with the IDX Composite rising 56 points, or 0.9%, to 6,231—its highest level in a month. Gains were broad-based, led by property, energy, basic materials, and transportation stocks, supported by robust investment momentum. Foreign direct investment jumped 27.4% year-on-year to a record high in Q2 2026, further bolstering market sentiment.
In China, Indonesia’s main trading partner, the central bank left the loan prime rate unchanged for the 14th straight month at its July fixing, seeking to balance growth support with currency stability. Still, the upside in Indonesian equities was limited by caution ahead of Bank Indonesia’s policy meeting this week, following a total of 100 basis points of rate hikes in May–June to support the rupiah.
Globally, Dow futures declined as rising tensions in the Gulf pushed oil prices higher and reignited inflation concerns, despite last week’s softer U.S. CPI data. Notable gainers on the day included Petrindo Jaya Kreasi (+4.0%), Bank Rakyat Indonesia (+3.0%), Indah Kiat Pulp & Paper (+2.6%), and Medco Energi (+2.4%).
