Indonesia Shares Trade Slightly Lower
Indonesia's IDX Composite fell 0.4% to 8,385, reversing previous gains due to Wall Street's drop. Investors await U.S. data post-government shutdown and Fed rate cut expectations eased. Jakarta plans a 15% export tax on gold above USD 3,200/oz. Manufacturing, consumer durables, and transport sectors led declines. Traders anticipate Bank Indonesia's rate decision, with potential future cuts signaled by Governor Warjiyo.
Indonesia’s IDX Composite dropped 30 points or 0.4% to 8,385 in Tuesday’s morning session, reversing gains from the prior day after an extended Wall Street drop overnight.
Investors are bracing for a wave of U.S. data following the end of a government shutdown, while expectations of a Fed rate cut next month eased after Vice Chair Jefferson highlighted downside risks to the labor market.
Locally, Jakarta is finalizing export tax rules on gold, with a proposed 15% levy on prices above USD 3,200 per ounce as part of a broader strategy to boost non-tax revenues in 2026.
Sector-wise, producer manufacturing, consumer durables, and transport led declines, with notable drops in Barito Pacific Tbk (-4.2%), Bumi Resources (-3.6%), Impack Pratama Industri (-3.4%), and GojekTokopedia (-3.2%).
Traders now await Bank Indonesia’s rate decision on Wednesday, with Governor Perry Warjiyo signaling that subdued inflation may allow for potential future cuts after 150 bps reductions since September 2024.
