Jakarta. Indonesian stocks fell 0.16% on Thursday morning as global risk-off sentiment weighed on investor appetite, with rising bond yields pressuring technology and other high-valuation stocks.

Jakarta Composite Index (JCI) dropped 10 points, or 0.16%, to 6,364 as of 9:14 a.m. Jakarta time, moving between 6,338 and 6,368 during the session.

Trading turnover reached Rp 634 billion ($35.45 million), with more than 116,000 transactions recorded. A total of 171 stocks gained, 297 declined, and 211 were unchanged.

On the domestic front, investors continued to assess Bank Indonesia’s decision to keep its benchmark BI Rate unchanged at 5.75% at its Sept. 23, 2026, policy meeting.

Phintraco Sekuritas said the decision underscored BI’s focus on maintaining rupiah stability while keeping inflation within its target range and supporting economic growth.

BI also kept its Deposit Facility Rate and Lending Facility Rate unchanged at 4.75% and 6.5%, respectively.

The central bank had previously raised the BI Rate by a cumulative 100 basis points in May and June to 5.75%, its highest level since April 2025. The rate hikes were aimed partly at attracting foreign capital inflows and strengthening the rupiah.

Phintraco also highlighted continued strength in bank lending. Credit growth reached 13.36% year-on-year in August 2026, easing slightly from 13.58% in July but marking the strongest growth since August 2014.

The positive lending trend was supported by the optimization of BI’s Macroprudential Liquidity Incentive (KLM) policy, with the value of KLM incentives reaching Rp 461.2 trillion as of early September.

Kiwoom Sekuritas Indonesia said global market sentiment had turned risk-off as investors paid closer attention to risk-asset valuations and developments in the bond market.

Rising yields put pressure particularly on technology stocks and other high-valuation sectors.

The artificial intelligence theme, however, remained in focus after Meta shares gained more than 20% since the launch of Muse on Sept. 8. “Investors are also awaiting developments in the Trump-Xi meeting and the results of US-Iran talks as catalysts for the next direction of risk appetite,” Kiwoom said.

Pluang Research said this week’s meeting between US President Donald Trump and Chinese President Xi Jinping highlighted the continued competition for technological supremacy, with neither Washington nor Beijing showing signs of slowing the development of AI.

Pluang also noted that Alibaba’s launch of a large-scale AI model and plans for a major data center just two days before the meeting indicated that China was accelerating its AI push ahead of the negotiations.

“For investors, this provides additional confirmation that the narrative of an AI slowdown due to security concerns is unlikely to significantly hamper infrastructure spending, as geopolitical dynamics between the world’s two largest economies are instead driving acceleration rather than restraint,” Pluang said.

Wall Street closed lower on Wednesday, with the S&P 500 falling 0.75%. The Nasdaq Composite declined 1.13%, while the Dow Jones Industrial Average fell 0.68%.

In Asia, as of 9:14 a.m. Jakarta time, Japan’s Nikkei 225 rose 1.47%, while Hong Kong’s Hang Seng Index fell 0.61%. Shanghai’s SSE Composite declined 0.45%.

South Korean markets were closed for Chuseok Day.

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