IDX declines following global market pressure from rising oil prices
Jakarta (ANTARA) - The Indonesia Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) moved lower on Wednesday morning, following trends in Asian and global markets, pressured by the rise in crude oil prices.
After opening higher, the IHSG at 09:50 WIB moved down by 37.34 points or 0.57 per cent to the 6,562.60 level. Meanwhile, the blue-chip group of 45 stocks, known as the LQ45 Index, fell by 4.61 points or 0.70 per cent to 649.80.
“If the IHSG can remain above 6,635, there is a chance it will close the gap at 6,705. If not, the IHSG is expected to consolidate within the 6,535-6,635 range,” said Ratna Lim, Head of Research at Phintraco Sekuritas, in her analysis in Jakarta on Wednesday.
Internationally, global crude oil prices and US government bond yields rose during Tuesday’s trading. Oil prices closed up nearly 5 per cent on Tuesday, alongside increasing political tensions between the US and Iran. Meanwhile, the US 10-year bond yield rose by more than 3 bps to 4.792 per cent, due to heightened inflation concerns.
Furthermore, US economic data showed a slowing but overall resilient labour market, resulting in a 68 per cent probability of a Fed interest rate hike in September 2026. Job openings data showed that US vacancies in July 2026 were recorded at 7.27 million, up from 7.18 million in June 2026, though lower than the estimate of 7.33 million.
Selling pressure on US government bonds and other major bond markets intensified on Tuesday, triggered by growing concerns regarding inflation and fiscal debt. The US 10-year benchmark yield reached its highest level since November 2023, while the 2-year yield touched its highest level since July 2024.
Similarly, the Japanese 10-year bond yield reached 3 per cent for the first time since August 1996, the German 10-year yield reached its highest since March 2011, and the UK 10-year government bond yield touched its highest since July 2007.
Domestically, domestic inflation data increased to 3.19 per cent year-on-year (yoy) in August 2026, from the previous 2.88 per cent (yoy), driven by rising food and transport prices, with core inflation rising to 2.96 per cent (yoy) from 2.76 per cent in the previous month.
The manufacturing PMI index experienced a contraction, dropping to 49.8 in August 2026 from 50.2 in July 2026. Although in contraction territory, it remains better than the positions seen in April and June 2026.
In a surprising turn, the trade balance achieved a surplus of 0.13 billion USD in July 2026, after recording deficits for two consecutive months.
The government aims for Indonesia’s economic growth to reach 6 per cent in 2027. To achieve this target, investment growth needs to be accelerated to 7 per cent.
This growth target is the primary direction of economic and fiscal policy in the preparation of the 2027 State Budget Draft (RAPBN). Government investment is expected to act as a catalyst, while the private sector is encouraged to become the main driver of investment. Danantara will contribute to investment in strategic sectors and downstreaming.
European markets all declined on Tuesday (01/09), including the Euro Stoxx 50 falling 0.81 per cent, the UK FTSE 100 falling 0.32 per cent, the German DAX falling 1.10 per cent, and the French CAC 40 falling 0.39 per cent.
US Wall Street markets also declined on Tuesday (01/09), with the S&P 500 index falling 0.71 per cent to 7,631.47, the Nasdaq Composite falling 1.03 per cent to 26,009.77, and the Dow Jones Industrial Average falling 0.79 per cent to 52,766.88.
Regional Asian stock markets this morning included the Nikkei falling 2.65 per cent to 64,456.00, the Shanghai index falling 0.88 per cent to 3,944.68, the Hang Seng falling 1.36 per cent to 24,940.76, the Kospi falling 2.9 per cent to 6,637.52, and the Straits Times index falling 0.09 per cent to 5,705.60.