Indonesian Stocks Reverse Gains as Consumer Confidence Hits 15-Month Low

Indonesian Stocks Reverse Gains as Consumer Confidence Hits 15-Month Low

Jakarta. Indonesian stocks opened higher on Tuesday but quickly reversed gains as investors turned cautious ahead of US inflation data and weighed weaker domestic consumer confidence.

Jakarta Composite Index (JCI) opened at 6,383, up 18 points or 0.28%, before falling 0.63% within the first 10 minutes of trading. The index moved between 6,321 and 6,388 during the session.

Trading volume reached 5.6 billion shares, with turnover of Rp 1.77 trillion ($99.42 million) and more than 292,817 transactions. A total of 143 stocks rose, 398 fell and 166 were unchanged.

Phintraco Sekuritas said President Prabowo Subianto’s nomination of Destry Damayanti as the sole candidate for Bank Indonesia governor was not enough to lift the stock market, although it helped strengthen the rupiah.

Domestic sentiment was also weighed down by a decline in consumer confidence for the third consecutive month. Bank Indonesia’s consumer confidence index fell to 116.8 in July from 117.8 in June, its lowest level since April 2025.

The decline was driven by the Current Economic Conditions Index, which fell to 107.9 from 109.2, and the Consumer Expectations Index, which dropped to 125.7 from 126.4.

“Nevertheless, the index remains in the optimistic zone, indicating that consumer confidence is still positive despite the decline,” Phintraco Sekuritas said.

Motorcycle sales, meanwhile, showed stronger momentum. Sales rose 8.3% year-on-year to 636,000 units in July, accelerating from 1.1% growth in June and reaching their highest level since October 2014, as inflationary pressures eased during the month.

Motorcycle sales grew 2% year-on-year to 3.77 million units in January-July 2026. “AISI expects motorcycle sales to remain relatively stable at around 6.4 million to 6.7 million units this year,” Phintraco Sekuritas said.

Global sentiment remained cautious ahead of the release of US consumer price index data for July on Wednesday, which is closely watched for clues on the Federal Reserve’s policy direction, Kiwoom Sekuritas Indonesia said.

“The market expects annual inflation to slow to 3.4% from 3.5% in June, while weaker labor data previously has lowered expectations of a September rate hike,” Kiwoom said.

Wall Street closed slightly lower on Monday after posting its strongest weekly gain since mid-April. The S&P 500 fell 0.1% to 7,753.11, the Nasdaq Composite declined 0.3% to 26,605.36, and the Dow Jones Industrial Average slipped 0.1% to 53,975.98.

The weakness was concentrated in technology stocks, including Intel, which fell after announcing plans to issue $15 billion worth of shares.

Across regional markets as of 9:05 a.m. Jakarta time on Tuesday, Japan’s Nikkei rose 2.08%, South Korea’s Kospi gained 0.79% and Hong Kong’s Hang Seng advanced 0.32%. China’s Shanghai Composite, however, slipped 0.20%.

Tags: Keywords: