Jakarta. Indonesian stocks opened lower on Friday, slipping 31 points, or 0.61%, to 5,066 as concerns over the Federal Reserve’s changing communication strategy and losses on Wall Street weighed on market sentiment.

Jakarta Composite Index (JCI) remained volatile during its first 10 minutes of trading, fluctuating between 5,053 and 5,116. Trading volume reached 7.86 billion shares, with a total turnover of Rp 1.48 trillion ($81.62 million) across more than 170,288 transactions. A total of 146 stocks advanced, 453 declined and 129 remained unchanged.

Pluang Research said Federal Reserve Chair nominee Kevin Warsh’s plan to reduce the frequency of interest rate decisions, alongside his move away from forward guidance, signals a major shift in how the central bank communicates with financial markets.

For years, investors have relied on the Fed’s signals to anticipate interest rate movements well in advance. However, that approach is now shifting toward what markets call “forward silence.”

“Every decision could potentially trigger sharper price movements because markets have fewer clues to prepare themselves. The initial effects are already visible, with the US Treasury yield curve steepening significantly in just two days,” Pluang said in its research note on Friday. “While the short-term impact remains limited, we believe interest rate volatility could be higher in the long run than markets currently anticipate. For investors, this reinforces the importance of maintaining diversification rather than relying on a single asset class” Pluang added.

Meanwhile, Phintraco Sekuritas said investors would be watching the Bank of Japan’s policy meeting, with the central bank widely expected to keep its benchmark interest rate unchanged at 1.25%. The decision is scheduled for announcement on Friday.

In Europe, several economic indicators are also due for release. Germany’s economy is expected to grow 1.1% year-on-year (yoy) in the third quarter of 2026, accelerating from 1% in the previous quarter.

German inflation is projected to ease slightly to 3% yoy in October 2026 from 3.3% in September. Meanwhile, the Eurozone economy is expected to expand 1.1% yoy in the third quarter, slowing from 1.2% in the second quarter.

On the domestic front, Phintraco Sekuritas highlighted the government's realization of Rp 262.4 trillion in People's Business Credit (KUR) disbursements to more than 4 million borrowers as of Oct. 26, 2026.

Of the total, approximately 1.62 million were first-time borrowers, equivalent to 118% of the government's target.

“The program could support consumption, job creation, and growth in the banking sector and related businesses. However, its effectiveness will still depend on credit quality and borrowers' ability to sustain their businesses,” Phintraco Sekuritas said.

Overnight, Wall Street closed lower on Thursday as large-cap stocks in the technology and communication services sectors came under pressure. The Nasdaq Composite fell 1.4%, while the S&P 500 and Dow Jones Industrial Average each declined 0.3%.

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