Jakarta. Indonesian stocks ended slightly lower on Thursday after a late-session sell-off erased gains built earlier in the day, with investors weighing Bank Indonesia's decision to keep its benchmark interest rate unchanged alongside external market developments.

Jakarta Composite Index (JCI) slipped 19 points, or 0.30%, to close at 6,315 after trading in positive territory for most of the day. The benchmark moved between 6,306 and 6,454.

Trading volume reached 63.31 billion shares with a turnover of Rp 23.93 trillion ($1.33 billion) across more than 3.18 million transactions. Gainers outnumbered losers 321 to 299, while 176 stocks were unchanged.

Pilarmas Investindo Sekuritas said the market was initially supported by Bank Indonesia's decision to maintain its benchmark BI-Rate at 5.75% during its July policy meeting.

"The decision came after the central bank had raised its benchmark interest rate by a cumulative 100 basis points since May 2026. It is now evaluating the impact of monetary tightening on rupiah stability, inflation, and economic growth," Pilarmas wrote in a research note on Thursday.

According to the brokerage, Bank Indonesia believes inflation remains within its target range and that the current monetary policy stance is sufficient to preserve macroeconomic stability.

Looking ahead, the central bank will continue to monitor global developments, including geopolitical uncertainties and the Federal Reserve's interest rate path, while strengthening supporting policies to maintain rupiah stability and attract foreign capital inflows.

External sentiment also helped support the market during the session, with semiconductor stocks gaining after several major US technology companies reaffirmed their commitment to investing in artificial intelligence infrastructure.

"This has boosted investor optimism over the long-term growth prospects of companies in the AI and semiconductor sectors," Pilarmas said.

However, the brokerage said investors remained cautious over escalating tensions in the Middle East. The intensifying conflict between the United States and Iran has pushed global oil prices higher, raising concerns over energy supply disruptions and global inflation.

"The situation could keep interest rates higher for longer and limit further gains in the equity market," Pilarmas added.

The conflict has become more complex after the Iran-backed Houthi group claimed responsibility for targeting two Saudi oil tankers in the Red Sea. Meanwhile, the US and Iran continue to exchange attacks, with prospects for peace talks appearing increasingly remote.

Elsewhere in Asia, South Korea's Kospi surged 4.4%, while Japan's Nikkei 225 gained 0.5%. Hong Kong's Hang Seng rose 1%, and China's Shanghai Composite recovered from earlier losses to finish 0.3% higher.

Overnight on Wall Street, the S&P 500 slipped 0.1%, the Dow Jones Industrial Average was little changed, and the Nasdaq Composite lost 0.6%.