Jakarta. Indonesian stocks gave up 0.38% on Wednesday as investors locked in gains and remained cautious over fiscal policy under the new finance minister ahead of the Federal Reserve’s interest-rate decision.

Jakarta Composite Index (JCI) fell 24 points to 6,436, after moving as high as 6,535 during the session. Trading volume reached 24.6 billion shares, with turnover of Rp 12.2 trillion ($690.13 million) from more than 1.8 million transactions.

Investors are now watching how the new finance minister manages the government’s fiscal position, with policy credibility and budget discipline emerging as key domestic concerns, Pilarmas Investindo Sekuritas said.

“Markets expect the ministerial change to maintain fiscal policy continuity and discipline,” Pilarmas wrote in a research note Wednesday.

The brokerage said investors also expect the leadership change to bring improvements in fiscal discipline and government policy communication, which it said would be important in strengthening the confidence of international investors and credit rating agencies.

One of the main issues is whether the government can keep the state budget deficit within the legal ceiling of 3% of gross domestic product (GDP). Expectations for policy continuity and fiscal credibility have remained among the domestic factors supporting the JCI.

Global markets, meanwhile, were focused on the Federal Reserve’s monetary policy decision, with investors widely expecting the US central bank to cut interest rates by 25 basis points.

Oil prices also came under pressure after US crude inventories rose more than expected. The buildup in stockpiles has capped the recent oil rally, providing some relief from concerns over global supply disruptions linked to the conflict in the Middle East.

Supply risks, however, remain on investors’ radar.

Most Asian stocks gained Wednesday despite losses on Wall Street as markets awaited the Fed decision. Japan’s Nikkei 225 rose 0.7% despite official data showing the country posted its fourth straight monthly trade deficit in August. South Korea’s Kospi advanced 1.4%, Hong Kong’s Hang Seng edged up 0.2%, and the Shanghai Composite gained 0.7%.

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