Jakarta. Indonesian stocks fell 0.88% on Monday as investors turned cautious ahead of Bank Indonesia’s (BI) monetary policy decision at its Board of Governors Meeting (RDG) scheduled for Tuesday and Wednesday.

Jakarta Composite Index (JCI) dropped 56 points to close lower, with investors weighing domestic monetary policy prospects against shifting global market conditions.

Trading volume reached 26.9 billion shares, with a total turnover of Rp 11.84 trillion ($663.75 million) and more than 1.83 million transactions. A total of 280 stocks rose, 354 declined and 156 remained unchanged.

Pilarmas Investindo Sekuritas said investors were likely to remain cautious ahead of the BI meeting, which is expected to be a key focus for the market this week. The central bank’s decision is seen as an important catalyst for the direction of the domestic market.

“The market is monitoring the direction of domestic monetary policy amid global market dynamics, including developments in inflation, the exchange rate and liquidity conditions,” Pilarmas wrote in its research report on Monday.

Overseas, Pilarmas said sentiment across Asian markets was relatively positive, supported by signs of increased diplomatic efforts to ease the Middle East conflict and restore energy flows in the region. These developments also contributed to a decline in global oil prices.

US President Donald Trump said he was open to meeting Iranian President Masoud Pezeshkian on the sidelines of the United Nations General Assembly. Trump was also reportedly considering meetings with several Gulf leaders.

Meanwhile, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al-Thani urged Gulf countries to work together to restore regional stability.

Investors also monitored the People’s Bank of China (PBOC), which kept its benchmark lending rates unchanged for the 16th consecutive month.

The PBOC maintained its one-year Loan Prime Rate (LPR) at 3% and its five-year LPR at 3.5%.

“The decision reflects Chinese policymakers’ cautious approach in dealing with global economic uncertainty,” Pilarmas said.

Asian technology stocks also advanced on continued enthusiasm surrounding artificial intelligence (AI), even as US technology leaders called for a slowdown in AI development over safety concerns.

South Korea’s Kospi rose 1.7%, while Hong Kong’s Hang Seng Index gained 0.9%. The Shanghai Composite Index advanced 1%.

Japan’s markets were closed on Monday and will remain shut through Wednesday for holidays.

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