Jakarta. Indonesian stocks opened lower on Monday after Bank Indonesia Governor Perry Warjiyo officially resigned, adding more uncertainties to markets already bracing for this week's Federal Reserve meeting and persistent geopolitical tensions in the Middle East.

Jakarta Composite Index (JCI) fell 11 points, or 0.17%, to 6,185 at the opening. Within the first 10 minutes of trading, the benchmark moved between 6,154 and 6,213.

Trading volume reached 4 billion shares worth Rp 1.9 trillion ($105.69 million) across more than 242,000 transactions. Losers outnumbered gainers, with 283 stocks declining, 237 advancing, and 1,911 remaining unchanged.

President Prabowo Subianto approved Perry's resignation on Monday morning, ending his nearly seven-year tenure as governor amid months of sharp rupiah depreciation. State Secretary Prasetyo Hadi said Prabowo had accepted the resignation and expressed his "utmost appreciation for his dedication in leading Bank Indonesia for around seven years."

Bank Indonesia Senior Deputy Governor Destry Damayanti will serve as acting governor. She said Perry had "voluntarily made the decision" for "personal reasons," without elaborating further.

On the domestic front, Kiwoom Sekuritas Indonesia said investors are monitoring the government's efforts to prepare the 2026 state budget for the possibility of higher global oil prices.

Finance Minister Purbaya Yudhi Sadewa has reiterated that the government will maintain energy subsidies and has no plans to increase subsidized fuel prices. Under President Prabowo's directive, the government is preparing various oil price scenarios to estimate the potential fiscal impact of higher subsidy spending.

"This step aims to maintain fiscal stability while ensuring adequate budgetary space should global energy prices continue to rise," Kiwoom said.

Kiwoom also highlighted the Directorate General of Taxes' efforts to strengthen tax collection by partnering with 165 large taxpayers, which came under the administration of the Large Taxpayer Office Two on July 1.

The cooperative compliance initiative is expected to improve voluntary tax compliance and support the government's 2026 tax revenue target of Rp 2,357.7 trillion. The Large Taxpayer Regional Office alone is expected to contribute Rp 805.42 trillion, or about 34.15% of the national target.

Globally, Wall Street finished mixed on Friday as weakness in chipmakers weighed on technology stocks while investors kept a close watch on developments in the Middle East.

The Dow Jones Industrial Average rose 0.46% to 51,947.25, lifted by telecommunications, financial and healthcare stocks. The S&P 500 edged up 0.05% to a fresh record high, while the Nasdaq Composite fell 0.64%.

Investor sentiment also remained cautious after President Donald Trump said he would soon decide whether to launch a major military strike against Iran following the expansion of the conflict into the Red Sea.

Oil prices eased after reports that Pakistan was considering facilitating renewed peace talks between the United States and Iran through a China-backed initiative.

Meanwhile, the Trump administration imposed new tariffs on imports from more than 80 countries, saying the affected nations had failed to prevent forced labor practices. The tariffs cover trading partners accounting for 99.4% of US trade, although they were challenged in court by two small businesses just hours after taking effect.

Looking ahead, Kiwoom said investors this week will closely monitor developments in the US-Iran conflict, alongside the Federal Reserve's policy meeting, US second-quarter GDP and PCE inflation data, and earnings reports from major technology companies.

Markets will also watch eurozone GDP and inflation figures, the Bank of Japan's interest rate meeting with expectations of an interest rate hike. Domestically, investors are also expected to focus on Indonesia's second-quarter corporate earnings season and corporate actions.

As of 9:04 a.m. Jakarta time, Japan's Nikkei 225 rose 0.07%, Hong Kong's Hang Seng gained 0.23%, and China's Shanghai Composite added 0.05%, while South Korea's Kospi fell 1.08%.

Add as a preferred source on Google +