Jakarta. Indonesian stocks opened lower on Monday as investors turned cautious ahead of key domestic economic data and an MSCI index rebalancing, while weak regional markets and renewed concerns over US inflation added to the pressure.

Jakarta Composite Index (JCI) slipped 7 points, or 0.10%, to 6,511 shortly after the opening. The index moved between 6,494 and 6,525.

Trading volume reached 4 billion shares, with turnover totaling Rp 1.88 trillion ($105 million) across more than 293,000 transactions. Some 328 stocks advanced, while 184 declined and 199 were unchanged.

Investors are awaiting a series of domestic economic indicators, including Indonesia’s manufacturing Purchasing Managers’ Index (PMI), trade balance, and inflation data.

Phintraco Sekuritas said investors were also likely to remain cautious during the effective period of the MSCI index rebalancing on Aug. 31.

“Investors are expected to remain cautious during the effective period of the MSCI index rebalancing on Aug. 31, 2026,” Phintraco Sekuritas said.

The brokerage added that the market was entering September, a month that has historically been associated with more volatile stock movements.

“The JCI is expected to consolidate this week within the 6,400-6,600 range,” Phintraco Sekuritas said.

Kiwoom Sekuritas Indonesia also highlighted the government’s decision to ease the obligation for 64 mining exporters to retain proceeds from natural resource exports, or DHE SDA, under Article 18A of Government Regulation No. 21 of 2026.

The relaxation applies to Export Customs Declarations starting Sept. 1, 2026. Eligible exporters are now required to retain at least 30% of their DHE SDA for a minimum of three months, compared with the general requirement to retain 100% for at least 12 months.

However, exporters must still repatriate all, or 100%, of their export proceeds into Indonesia’s financial system.

CORE Indonesia estimates that the policy could cover potential export proceeds of around $30 billion-$40 billion annually, mainly from companies in the nickel industry chain, nickel-based steel, Freeport, alumina, and other processed mineral businesses.

“The relaxation provides greater liquidity flexibility for exporters, but at the same time reduces the amount of foreign exchange required to be held within the domestic financial system over the longer term,” Kiwoom said.

On the domestic front, Jakarta recorded the country’s highest investment realization at Rp 173.6 trillion in the first half of 2026, accounting for 17.2% of total national investment. The capital also contributed 16.3% to Indonesia’s gross domestic product in the second quarter of 2026.

The largest investments flowed into transportation, warehousing, and telecommunications, followed by services such as web hosting and data centers, as well as trade.

Global sentiment also remained under pressure. Kiwoom pointed to comments by Federal Reserve Chair Kevin Warsh, who said inflation had yet to show meaningful deceleration, raising concerns that the process of bringing down price pressures could take longer.

“This prompted investors to reposition their portfolios, particularly in growth stocks that are highly sensitive to changes in interest rate expectations,” Kiwoom said.

Wall Street closed lower on Friday, dragged mainly by technology and defensive stocks. The Dow Jones Industrial Average edged down 0.02%, while the S&P 500 fell 0.25% and the Nasdaq Composite declined 0.52%.

Nvidia was among the biggest drags after its shares tumbled 4.58%, while PayPal plunged 12.71%.

Regional markets were also broadly lower on Monday. As of 9:15 a.m. Jakarta time, Japan’s Nikkei had dropped 1.89%, South Korea’s Kospi fell 2.35%, Hong Kong’s Hang Seng declined 0.91%, and China’s Shanghai Composite slipped 0.45%.

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