Jakarta. Indonesian stocks slipped on Monday as investors weighed President Prabowo Subianto’s Cabinet reshuffle and a sharp rise in global oil prices, while the market remained cautious ahead of the Federal Reserve’s policy meeting.

Jakarta Composite Index (JCI) fell 7 points, or 0.1%, to 6,534 at the close.

President Prabowo on Monday appointed Suahasil Nazara as finance minister, replacing Purbaya Yudhi Sadewa in a Cabinet reshuffle. Prabowo announced the appointment at the Presidential Palace in Jakarta, saying Suahasil would serve for the remainder of the 2024-2029 term.

“I have decided to appoint Prof. Suahasil Nazara PhD as finance minister of the Red and White Cabinet for the remainder of the 2024-2029 term,” Prabowo said.

The reshuffle added to domestic market uncertainty, prompting investors to take a wait-and-see stance ahead of the Fed meeting, particularly as oil prices climbed back above $100 per barrel.

Pilarmas Investindo Sekuritas said higher oil prices could increase pressure on the state budget, particularly through energy subsidies, while potentially widening the fiscal deficit and weighing on the rupiah.

“Market participants are awaiting the outcome of the upcoming Fed policy meeting while assessing the impact of surging oil prices,” Pilarmas said.

The brokerage added that the JCI’s decline reflected investors’ focus on the Fed meeting and concerns over the broader economic impact of higher oil prices.

Global oil prices continued to rise and broke above $100 per barrel after Saudi Arabia shut a key pipeline route following drone attacks and postponed talks with Gulf countries.

“This has raised concerns over potential disruptions to global energy supplies,” Pilarmas wrote in a research note on Monday.

Meanwhile, investors were also digesting US inflation data. Monthly inflation accelerated to 0.4% in August 2026 from 0.1% in July. On an annual basis, inflation remained at 3.4%, while core monthly inflation rose to 0.3% from 0.2%.

Pilarmas said the higher inflation reading has made the Fed’s interest-rate outlook a key focus for markets. According to CME FedWatch, the probability of a 25-basis-point Fed rate hike at this week’s meeting reached 86.5%.

“Markets are also pricing in another rate hike through the end of the year,” Pilarmas added.

Trading volume reached 35.7 billion shares, with turnover at Rp 18 trillion ($1.02 billion) across more than 2.12 million transactions. A total of 219 stocks advanced, 429 declined and 141 were unchanged.

Across regional markets on Monday, South Korea’s Kospi fell 3.3%, while Japan’s Nikkei 225 declined 0.8%. Hong Kong’s Hang Seng rose 0.4%, while the Shanghai Composite edged down less than 0.1%.

On Friday, Wall Street’s S&P 500 gained 0.9%, ending a four-day losing streak. The Dow Jones Industrial Average rose 1%, while the tech-heavy Nasdaq Composite climbed 1%.

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