Jakarta. Indonesian stocks fell 0.86% on Wednesday as investors weighed Bank Indonesia’s decision to keep its benchmark interest rate unchanged and continued to assess global geopolitical risks.

Jakarta Composite Index (JCI) fell 55 points to 6,394, moving between 6,373 and 6,490 during the session. Trading volume reached 35.9 billion shares, with turnover of Rp 14.24 trillion ($798.19 million) and more than 2.19 million transactions. A total of 238 stocks rose, 363 fell and 188 were unchanged.

Bank Indonesia (BI) kept its benchmark interest rate at 5.75% on Wednesday, prioritizing rupiah stability and inflation control amid heightened global volatility stemming from the conflict in the Middle East. The central bank also held its deposit facility rate at 4.75% and lending facility rate at 6.50% following its Aug. 18-19 Board of Governors Meeting.

Acting BI Governor Destry Damayanti said the decision was aimed at strengthening the rupiah against external pressures while keeping inflation in 2026 and 2027 within the government’s target range of 2.5% ± 1%.

Investors also monitored the central bank’s policy direction, particularly its approach to rupiah stability, inflation and the outlook for foreign capital flows.

The decision drew particular attention as it was BI’s first under Acting Governor Destry Damayanti. Market participants were not only awaiting the rate decision but also looking for guidance on economic conditions and the direction of monetary policy going forward.

“From the domestic side, the JCI was weighed down by profit-taking, while the market was also focused on Bank Indonesia’s policy decision today,” Pilarmas said in a research note on Wednesday.

Beyond the BI decision, Pilarmas said domestic sentiment remained pressured by FTSE’s decision to hold off on adding new constituents from Indonesia’s capital market until its December 2026 index review.

“The decision could potentially constrain foreign fund flows while also testing the credibility of regulators in carrying out Indonesia’s capital market reforms,” Pilarmas said.

Externally, Asian stock markets mostly declined as investors continued to monitor uncertainty surrounding the US-Iran conflict and the potential disruption of energy supplies through the Strait of Hormuz, according to Pilarmas.

US President Donald Trump has said there is no further agreement with Iran, keeping geopolitical uncertainty elevated and potentially weighing on market sentiment.

Investors were also awaiting the minutes of the Federal Reserve’s July meeting for clues on the outlook for US monetary policy. The Fed kept interest rates unchanged at the meeting, although three officials dissented in favor of a rate hike.

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