Jakarta. Indonesian stocks fell 55 points, or 0.89%, to close at 6,130 on Tuesday as investors remained cautious over Bank Indonesia's leadership transition following Governor Perry Warjiyo's resignation and awaited the US Federal Reserve's policy decision later this week.

Jakarta Composite Index (JCI) traded between 6,130 and 6,199. Trading volume reached 25.4 billion shares with turnover of Rp 10.92 trillion ($604.15 million) across more than 1.67 million transactions. Declining stocks outnumbered gainers, with 360 losers against 265 advancers, while 172 stocks were unchanged.

Pilarmas Sekuritas Indonesia said investors are closely watching the direction of Bank Indonesia's monetary policy under its incoming governor.

"The market is naturally waiting to see how the leadership transition to the new BI governor will shape monetary policy, as well as the central bank's credibility and independence amid ongoing global uncertainty," Pilarmas wrote in a research note.

The brokerage noted that Bank Indonesia's acting governor has sought to reassure markets, urging investors not to panic and stressing that the central bank's policy direction remains unchanged, with all monetary instruments continuing to be deployed to safeguard financial market stability.

Externally, Pilarmas said most Asian markets weakened as investors stayed on the sidelines ahead of the Federal Reserve's policy announcement later this week. While markets broadly expect the Fed to leave interest rates unchanged, some investors continue to speculate that persistent inflation could still prompt a rate hike this week, though most expect the next increase to come in September.

The brokerage also said Fed Chair Kevin Warsh has continued to emphasize restoring the central bank's anti-inflation credibility after repeatedly pledging to bring inflation under control.

Meanwhile, semiconductor stocks remained under pressure, dragging down major chipmakers and dampening broader market risk appetite.

"The pressure comes as investors increasingly question whether massive AI investments will generate sufficient returns for chipmakers," Pilarmas said.

Market sentiment also drew support from hopes that tensions in the Middle East could ease after President Donald Trump said the United States was holding talks with Iran aimed at ending the regional conflict. The prospect of de-escalation pushed oil prices lower, easing concerns over inflation and tighter monetary policy.

However, Trump also warned that Washington was prepared to resume military strikes against Iran if negotiations failed.

Most Asian markets ended lower on Tuesday. Japan's Nikkei 225 fell 4%, while South Korea's Kospi tumbled 10.8% to 6,023 after heavy selling in semiconductor stocks, with trading temporarily halted as the benchmark sank to its lowest level since April.

Hong Kong's Hang Seng edged up 0.3% to 25,289.04, while China's Shanghai Composite Index slipped 1.2% to 3,813.

Wall Street closed mixed overnight after early gains faded. The S&P 500 ended little changed at 7,413, the Nasdaq Composite slipped 0.2% to 24,932, while the Dow Jones Industrial Average rose 0.5% to 52,210.