Jakarta. Indonesian stocks closed lower on Monday as investors weighed the market implications of Bank Indonesia Governor Perry Warjiyo's abrupt resignation, overshadowing a broader rally across Asian markets fueled by easing geopolitical tensions in the Middle East.

Jakarta Composite Index (JCI) fell 10 points, or 0.17%, to 6,185 after trading between 6,144 and 6,219. Trading volume reached 27.7 billion shares with a turnover of Rp 12.17 trillion ($675.19 million) across more than 1.8 million transactions. Gainers outnumbered losers 307 to 341, while 147 stocks were unchanged.

Pilarmas Investindo Sekuritas said investors remained in a wait-and-see mode as they awaited clarity over Bank Indonesia's permanent leadership after Perry's sudden resignation. The government has appointed Senior Deputy Governor Destry Damayanti as acting governor to ensure continuity at the central bank.

While the appointment is intended to preserve market confidence in Bank Indonesia's ability to maintain policy continuity and stabilize domestic financial markets, Pilarmas said investors remain concerned that Perry's departure could increase uncertainty over monetary policy, the central bank's independence, and rupiah stability.

Head of Research at Kiwoom Sekuritas Indonesia Liza Suryanata said Perry's resignation has become a real test of Bank Indonesia's independence following the Financial Sector Development and Strengthening Law (P2SK), particularly after its latest amendments in 2026.

"Perry Warjiyo's resignation cannot immediately be taken as evidence of political intervention. But in my view, the P2SK law has significantly weakened the institutional safeguards separating Bank Indonesia, the government, and the House of Representatives," Liza said.

She added that market concerns would likely intensify if Thomas Djiwandono — President Prabowo Subianto's nephew — is appointed as the next BI governor, bypassing Destry Damayanti, who as senior deputy governor is institutionally the most natural figure to lead the transition.

Thomas joined Bank Indonesia's Board of Governors only a few months ago. If he is elevated to governor so quickly, Liza said, investors would struggle to view the appointment as a normal succession process.

"Legally, Thomas Djiwandono's appointment may be valid if nominated by the president and approved by the House of Representatives. But we must remember that legality does not automatically create credibility," Liza said.

She warned that Thomas's family ties to the president, combined with his limited central banking experience, could reinforce perceptions that the relationship between the government and Bank Indonesia is shifting "from policy coordination toward political control."

Regional markets, meanwhile, advanced after the weekend ceasefire between the United States and Iran eased geopolitical concerns.

Japan's Nikkei 225 rose 0.5%, South Korea's Kospi gained 1%, Hong Kong's Hang Seng climbed 1.1%, and China's Shanghai Composite added 1.1%.

Sentiment improved after Washington halted its military strikes against Iran over the weekend. Iran said on Sunday it had suspended retaliatory attacks against US allies in the region after the United States ended its military operations against the country on Friday.

Pilarmas said the de-escalation in the Middle East also pushed global oil prices lower, easing concerns over energy supply disruptions and inflation.

The brokerage also pointed to fresh data from China's National Bureau of Statistics showing industrial profits grew 18.7%, slightly slower than the previous month's 18.8%. The figures suggest China's recovery remains intact, supported by exports, although domestic demand continues to lag.

Investors are also looking ahead to this weekend's Politburo meeting, where President Xi Jinping and other top policymakers are expected to outline China's economic priorities for the second half of the year.

Expectations for additional policy support have strengthened after recent economic indicators pointed to an uneven recovery, reinforcing calls for measures to boost growth and stabilize domestic demand.