14.07.202602:48:17UTC+00Indonesia Equities Extend Gains on S&P Affirmation, Fiscal Lift

Indonesian shares climbed 38 points, or 0.6%, to 6,074 in early Tuesday trade, extending gains from the previous session on strength in energy, cyclical, and infrastructure stocks. Market sentiment improved after S&P affirmed Indonesia’s sovereign rating at BBB/A-2 with a stable outlook, noting that risks from elevated energy prices, higher interest rates, rupiah weakness, and policy uncertainty could be offset by robust commodity revenues, restrained government spending, and further reforms in the resource sector.

The fiscal backdrop also provided support, with mid-year state revenue reaching 46.3% of the annual target, up 21.4% year-on-year. Nonetheless, further gains were limited by a sharp decline in U.S. futures after Wall Street retreated overnight, pressured by President Trump’s pledge to reinstate a blockade on Iranian shipping through the Strait of Hormuz.

Investors remained cautious ahead of China’s June trade figures due later in the day, followed by activity data and Q2 GDP scheduled for release on Wednesday. Among the notable movers were Energi Mega Persada (+10.8%), Indika Energy (+8.1%), Kalbe Farma (+2.1%), and Bukit Asam (+1.2%).