Jakarta. Indonesian stocks rose 0.94% to 5,328 at Wednesday’s close as Bank Indonesia maintained its benchmark interest rate at 5.75%, keeping borrowing costs unchanged amid rupiah volatility, rising oil prices and uncertainty over the US Federal Reserve’s policy direction.

“The Bank Indonesia Board of Governors meeting on Oct. 20–21, 2026, decided to maintain the BI Rate at 5.75%,” BI Governor Destry Damayanti said at a press conference on the central bank’s latest policy decision.

A total of 384 stocks advanced, while 328 declined and 251 remained unchanged. Trading value reached Rp 17.1 trillion ($947.99 million).

Before the decision, Pilarmas Investindo Sekuritas said investors were weighing challenging macroeconomic conditions, including rupiah fluctuations, uncertainty over the Fed’s next move and risks from elevated oil prices.

These factors could add pressure to fiscal conditions and inflation, particularly as El Niño threatens to push up food prices. September inflation stood at 3.28% year-on-year, remaining within BI’s target range of 1.5% to 3.5%.

“Market participants anticipate a potential BI rate hike, with the consensus expecting the rate to increase from 5.75% to 6%,” Pilarmas wrote in its research note on Wednesday.

On the external front, global oil prices rose following reports that no agreement had been reached to resolve tensions between the United States and Iran. Risks to shipping routes in the Red Sea and Saudi Arabia’s oil infrastructure also remained a concern for investors.

Higher energy prices could intensify global inflationary pressures and influence monetary policy expectations, Pilarmas said.

“Meanwhile, market participants are also monitoring the Fed’s policy direction amid global economic uncertainty,” the brokerage added.

Asian stock markets moved mixed on Wednesday, with global sentiment also influenced by Wall Street’s performance after Super Micro Computer raised its revenue forecast on strong demand for artificial intelligence (AI) servers.

China’s stronger-than-expected economic growth in the third quarter reduced expectations for additional stimulus, although domestic consumption and investment remained areas of concern, Pilarmas said.

South Korea’s Kospi surged 3.3%, while Japan’s Nikkei 225 gained 0.9%. Greater China markets mostly declined, with Hong Kong’s Hang Seng Index falling 0.9% and the Shanghai Composite Index losing 0.6%.

On Tuesday, most US stocks advanced following strong corporate earnings reports. The S&P 500 rose 0.3%, while the Dow Jones Industrial Average gained 1%. However, renewed swings in AI-related stocks pushed the Nasdaq Composite down slightly, by less than 0.1%.

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