Indonesian equities edged higher on Thursday morning, with the IDX Composite Index rising 14 points, or 0.2%, to 5,883, partially recovering from the sharp losses recorded in the previous session. The rebound mirrored firmer U.S. equity futures following a mostly lower close on Wall Street overnight, as renewed U.S.–Iran tensions and higher oil prices weighed on risk appetite.
Domestically, sentiment was supported by an increase in June foreign-exchange reserves and faster state budget execution in the first half of 2026. In China, Indonesia’s key trading partner, headline inflation eased to 1.1% in June, coming in below expectations as food prices declined further.
Gains on the Jakarta bourse were tempered, however, by concerns over a potential reclassification to frontier-market status in 2027, as highlighted by S&P Dow Jones Indices. Adding to the cautious tone, consumer confidence fell for a second consecutive month in June, marking its lowest level since last September.
Sector-wise, basic materials, energy, transportation, and industrials led the advance. Standout performers included ESSA Industries (up 4.6%), Amman Mineral International (3.0%), Bumi Resources (2.2%), and Medco Energi (1.3%).
