{
    "success": true,
    "data": {
        "id": 1835545,
        "msgid": "indonesia-hit-by-successive-bad-news-in-early-july-ihsg-and-rupiah-under-threat-1782949841",
        "date": "2026-07-02 06:20:24",
        "title": "Indonesia Hit by Successive Bad News in Early July, IHSG and Rupiah Under Threat",
        "author": "",
        "source": "CNBC",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia's financial markets are poised for further pressure following a series of negative economic indicators, including the first trade deficit in six years and a contraction in manufacturing activity. The weakening of Wall Street, driven by profit-taking in technology stocks, and hawkish signals from the Federal Reserve are adding to the headwinds. The combination of domestic and global factors threatens to weigh heavily on the rupiah and the Jakarta Composite Index (IHSG).",
        "content": "<p>Indonesia\u2019s financial markets are expected to face continued pressure\ntoday. In the bond market, the yield on 10-year Government Securities\n(SBN) eased to 7.153% in yesterday\u2019s trading, down from 7.167% the\nprevious day. Falling yields indicate that SBN prices are strengthening\nas they are sought after by investors. On Wall Street, US stock markets\nweakened in trading on Wednesday, or early Thursday Indonesian time. The\nblue-chip Dow Jones Industrial Average (DJIA) touched a new record high\nbefore losing momentum towards the close, while the Nasdaq Composite was\npressured by a sell-off in chipmaker stocks. The 30-stock index fell\n13.96 points, or 0.03%, to close at 52,305.24. The Dow had earlier\nsurged to a new intraday record of 52,742.66 before reversing course\nafter Caterpillar, a company benefiting from the artificial intelligence\n(AI) trend, plunged nearly 7%. Meanwhile, the S&amp;P 500 fell 0.22% to\nclose at 7,483.23, and the Nasdaq Composite weakened 0.66% to 26,040.03.\nThe tech-heavy index was pressured after investors took profits on\nsemiconductor stocks, following a sector surge of more than 80% in the\nfirst half of 2026. Micron shares plummeted more than 10%, although they\nare still up over 260% year-to-date. Sandisk also slumped more than 10%\nbut remains up over 750% in 2026. Nvidia and Broadcom fell about 1% and\n2%, respectively. \u201cThe Great Rotation strategy continues into the third\nquarter. The boring blue-chip stocks in the Dow Jones continue to\nattract fund flows from profit-taking in technology stocks,\u201d said Jeff\nKilburg, founder and CEO of KKM Financial. \u201cThis condition is very\nhealthy and shows that the stock market rally is broadening, supporting\nthe bullish trend now entering its fourth year,\u201d he added. The moves\ncame after the major indices closed the first half of 2026 with solid\nperformance. In the first six months of the year, the Dow rose 8.9%, its\nbest first-half performance since 2021. The S&amp;P 500 gained 9.6%,\nwhile the Nasdaq rose 12.8%. The small-cap Russell 2000 index surged\nnearly 22%, its best first-half performance since 1991. However, gains\nin some large-cap technology stocks helped limit the Nasdaq\u2019s decline.\nMeta Platforms shares soared nearly 9% after the company announced it\nwould launch a cloud computing business and sell excess computing\ncapacity, a move expected to boost revenue. Microsoft and Apple shares\nrose 3% and nearly 2%, respectively. Market participants are also\nmonitoring developments from the Federal Reserve, after Fed Chair Kevin\nWarsh delivered a speech at a European Central Bank (ECB) conference in\nPortugal. Although he gave no indication of the monetary policy\ndirection for this month\u2019s meeting, Warsh stressed that \u201cwe have seen\nthat prices are still too high.\u201d Entering the second day of the second\nhalf of 2026, Indonesia\u2019s financial markets will face a number of\nsentiments, ranging from economic data to the speech by Fed Chair Kevin\nWarsh. The trade balance deficit, the collapse of the Manufacturing PMI,\nrising inflation, and the Fed\u2019s still-hawkish stance could put pressure\non the rupiah and the IHSG today. Iran and the United States ended a\nround of indirect talks in Doha without significant progress towards\nlong-term peace. The two-day negotiations remained focused on shipping\nin the Strait of Hormuz and financial incentives for Iran, rather than\nthe nuclear programme restrictions that triggered the conflict. US\nPresident Donald Trump claimed the Iranian denuclearisation process was\ngoing well. However, several sources said the nuclear issue was not\ndiscussed at all as the meeting was only technical in nature. The two\nsides also did not meet directly and only communicated through mediators\nfrom Qatar and Pakistan. Meanwhile, the status of the Strait of Hormuz\nremains uncertain even as ship traffic begins to recover. Iran insists\non gaining recognition for its control over the strait and plans to\nstart imposing tariffs on passing ships from mid-August. Trump\u2019s\nstatements, which dampened the risk of a new war, caused oil prices to\nfall to their lowest level in four months. Indonesia\u2019s trade balance\nrecorded a deficit for the first time in six years. The Central\nStatistics Agency (BPS) announced that Indonesia\u2019s trade balance\nsuffered a deficit of US$1.61 billion in May 2026. The deficit occurred\nbecause the export value was recorded at US$23.20 billion, while imports\nreached US$24.81 billion. This is the first deficit since April 2020,\nwhen the trade balance was also in deficit by US$0.38 billion. This\nlatest record breaks Indonesia\u2019s 72-month trade surplus streak that had\nbeen running since May 2020. Looking further back, the May 2026 deficit\nis also the deepest since April 2019, when the trade balance recorded a\ndeficit of US$2.33 billion. Imports increased by 22.16% compared to May\n2025. BPS recorded oil and gas imports of US$4.51 billion, an increase\nof 70.78% year-on-year. Non-oil and gas imports were US$20.30 billion,\nup 14.69%. The annual import growth was driven by non-oil and gas\nimports, which contributed 12.95%. Coordinating Minister for Economic\nAffairs Airlangga Hartarto revealed that the surge in global oil and gas\nprices was the main cause of Indonesia\u2019s trade balance deficit. The rise\nin energy prices pushed up the value of oil and gas imports, ultimately\nreversing the country\u2019s trade balance position.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesia-hit-by-successive-bad-news-in-early-july-ihsg-and-rupiah-under-threat-1782949841",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}