Jakarta. Indonesian stocks fell 1.99% on Tuesday, shedding 107 points to close at 5,266 as concerns over elevated oil prices, inflation risks and potential pressure on the state budget outweighed relief from FTSE Russell’s decision to retain the country’s emerging-market status.

Jakarta Composite Index (JCI) fluctuated between 5,182 and 5,418 during the session. Trading volume reached 36.3 billion shares, with a total transaction value of Rp 17.57 trillion ($967.32 million) across more than 1.9 million transactions. Declining stocks outnumbered advancing ones, with 611 losers, 100 gainers and 82 unchanged.

Pilarmas Investindo Sekuritas said a combination of external and domestic factors shaped the market’s performance, with regional developments, monetary policy expectations and energy-related fiscal risks weighing on sentiment.

Across Asia, markets were mixed as investors assessed falling oil prices amid diplomatic efforts to ease tensions between the United States and Iran. Senior officials from Saudi Arabia, Pakistan and Turkey met with senior Iranian officials on Monday to ease tensions and revive negotiations aimed at preventing another wave of US-Israeli attacks on Iran.

Although lower oil prices helped ease short-term inflation concerns, energy prices remained elevated, keeping inflation risks in focus.

According to the CME FedWatch Tool, markets priced in an approximately 82% probability of an interest rate hike in December. Investors are also awaiting upcoming US gross domestic product (GDP) and personal consumption expenditures (PCE) price index data for further clues on the economic outlook and the Federal Reserve’s policy trajectory.

In China, investors weighed stronger economic data against concerns over corporate profitability. Markets are also watching developments at the Fifth Plenum of the Chinese Communist Party for further signals on policy direction and economic priorities.

China’s industrial profits rose 15.5% year-on-year to 6.03 trillion yuan in the first nine months of 2026, slowing from 15.7% growth in the January-August period. Weak domestic demand continued to weigh on several industries.

Domestically, concerns over the economic impact of high energy prices added pressure to Indonesian stocks. Although global oil prices declined, crude oil remained above $110 per barrel, raising concerns over the impact on the domestic economy and government finances.

The government has sought to shield domestic economic activity from global shocks by keeping prices of several subsidized products unchanged. However, maintaining these prices amid elevated energy costs could increase subsidy and energy compensation spending, heightening the risk of a wider budget deficit.

FTSE Russell’s decision to retain Indonesia in its Secondary Emerging Market category and exclude the country from its watchlist provided some support, limiting the market’s losses.

“On the other hand, news from FTSE provided a positive catalyst that helped prevent a deeper decline in the index, after the Indonesia Stock Exchange announced that FTSE Russell had retained Indonesia in the Secondary Emerging Market category and did not place the Indonesian capital market on its watchlist,” Pilarmas wrote.

The decision eased concerns over potential foreign selling pressure and provided some reassurance to investors about the stability of Indonesia’s capital market.

Elsewhere in Asia, stocks were mostly higher on Tuesday following an artificial intelligence-driven rally on Wall Street, with investors looking ahead to major corporate earnings reports and central bank decisions.

South Korea’s Kospi jumped more than 4% during the session before closing 3.1% higher at 5,638. Strong global demand for semiconductors continued to support growth, while data released Tuesday showed that South Korea’s economy expanded at a better-than-expected annualized rate of 3.4% in the July-September quarter.

Tokyo’s Nikkei gained 1.7%, while Hong Kong’s Hang Seng Index reversed early gains to close 0.6% lower. The Shanghai Composite Index slipped 0.3%.

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