Jakarta. Indonesian stocks fell in early trading on Wednesday as higher oil prices and expectations of a US Federal Reserve rate hike weighed on sentiment, while the Jakarta Composite Index (JCI) later swung between gains and losses.

JCI opened down 7.23 points, or 0.11%, at 6,453 before rebounding and moving in a range of 6,445 to 6,509.

Data from RTI showed 685.16 billion shares had changed hands in the opening minutes, with trading value reaching Rp 332.11 billion ($18.75 million) across 64,340 transactions. A total of 183 stocks gained, 219 declined and 248 were unchanged.

Phintraco Sekuritas said rising global oil prices and expectations of a US rate hike remained key factors weighing on the market.

Global oil prices continued to climb, raising concerns that higher energy costs could add to inflationary pressures and keep global central banks focused on monetary policy.

Kiwoom Sekuritas Indonesia also pointed to renewed geopolitical risks following disruptions to several oil facilities and distribution routes in Libya and Saudi Arabia, raising concerns over global energy supplies.

In Libya, operations at three oil fields were reportedly halted, with the potential for force majeure. Oil shipments through Saudi Arabia's Yanbu port were also reportedly disrupted, increasing the risk of further pressure on global oil supplies.

Investors were also awaiting the Federal Reserve's policy decision later Wednesday in the US. The Fed is expected to raise its benchmark interest rate by 25 basis points to a range of 3.75%-4%.

A US rate hike could weigh on risk assets, including stocks in emerging markets, particularly if the Fed signals that monetary policy will remain tight.

Phintraco Sekuritas also flagged risks in the state-owned banking sector. S&P Global Ratings previously warned of credit risks and pressure on state-owned banks' profitability as government-directed lending growth has increased to around twice the pace of overall industry growth.

“This condition could increase the risk of non-performing loans (NPLs) and pressure banks' profitability if credit quality is not maintained,” Phintraco Sekuritas said.

Investors will also monitor global economic data that could influence market sentiment.

Meanwhile, trading and investment platform Pluang highlighted what it described as a panic reaction among retail investors in shares of technology company GoTo Gojek Tokopedia (GOTO) following the introduction of a Rp 1 minimum share price.

“The new floor merely widens the range in which prices can move; it does not determine the direction of that movement. In fact, GOTO’s fundamentals tell a more complex story than simply the fear surrounding the Rp 1 threshold,” Pluang wrote.

Pluang said the panic among many retail investors after hearing that the minimum share price would be lowered to Rp 1 was somewhat misplaced from a market-mechanics perspective. Once the Rp 1 floor takes effect, GOTO shares could move in either direction as the price adjusts to reflect the market’s true equilibrium, with the third quarter set to be the most crucial period for determining which narrative ultimately prevails.

“GOTO posted a net profit for two consecutive quarters in the first half of 2026, a milestone it had never achieved before, supported by a 58% year-on-year increase in its fintech loan book. The regulation will not automatically cause the stock to decline. Share-price performance will depend on the company’s fundamentals and financial outlook,” Pluang said.

Wall Street closed lower on Tuesday, with the S&P 500 falling 0.45%, the Nasdaq Composite declining 0.78% and the Dow Jones Industrial Average losing 0.63%.

The declines came as the 10-year US Treasury yield broke above 5% and selling pressure intensified ahead of the Federal Reserve's interest rate decision.

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