13.02.202603:57:45UTC+00Caution Weighs on Indonesia Equities, Weekly Recovery Still Intact

Indonesian shares fell 25 points, or 0.3%, to 8,240 in Friday morning trade, extending the previous session’s losses after a sharp overnight sell-off on Wall Street driven by renewed pressure on technology stocks, ahead of the release of U.S. CPI data later today.

Domestically, foreign investors stayed cautious, reflecting a defensive stance before Bank Indonesia’s policy meeting next week, following the swearing-in of a new deputy governor that has sparked debate over the central bank’s independence. Sector losses were led by basic materials, healthcare, and infrastructure, with notable declines in Amman Mineral Internasional (-4.2%), Vale Indonesia (-3.9%), and Telkom Indonesia (-2.3%).

Despite the pullback, the market remains on course for its first weekly gain in four weeks, up about 3.8% so far, supported by signs of a rapid post-disaster recovery in Sumatra, as highlighted by the Cabinet Secretary. In China, Indonesia’s key trading partner, weak January CPI and PPI figures have fueled expectations that Beijing will introduce additional support measures ahead of the March legislative meetings.