Indonesia shares fall 0.5% as inflation quickens

Indonesian shares slipped 36 points or 0.5% to 6,566 in Wednesday morning trade, breaking a two-day advance as U.S. futures mostly weakened after Wall Street logged a third straight loss overnight on surging bond yields and oil prices.

Locally, August headline inflation quickened to 3.19% from July’s three-month low of 2.28%, slightly above expectations, driven by higher food costs under El-Nino’s impact, while core inflation hit its highest since March 2023.

Still, losses were partly offset by a surprise July trade surplus as exports outperformed.

Separately, newly appointed Bank Indonesia governor Destry Damayanti projected 2027 GDP growth at 5.2%—6% and estimated the rupiah at 17,300—17,800 per dollar next year.

Infrastructure, energy, and non-cyclicals weighed, with notable laggards including Petrindo Jaya Kreasi (-3.9%), Vale Indonesia (-2.8%), Alamtri Minerals (-2.7%), and Kalbe Farma (-1.9%).