Jakarta. Indonesia's benchmark stock index opened lower on Tuesday as investors stayed cautious ahead of key domestic macroeconomic data and this week's US employment report, despite overnight gains on Wall Street.

The Jakarta Composite Index (JCI) fell 19 points, or 0.32%, to 5,801 in early trading after moving within a range of 5,773 to 5,811.

As of the opening minutes, trading volume reached 587 million shares with a turnover of Rp 716 billion ($40 million) across more than 64,000 transactions. Declining stocks outnumbered gainers 262 to 164, while 178 stocks were unchanged.

Phintraco Sekuritas expects the JCI to trade sideways within the 5,700-5,900 range as investors await fresh domestic economic data.

"With limited positive catalysts in the near term and heightened investor caution ahead of the release of domestic macroeconomic data, the JCI is expected to move sideways in the 5,700-5,900 range today," the brokerage wrote in a research note on Tuesday.

The brokerage also highlighted a proposal by ministries and government agencies to seek an additional Rp 984 trillion in spending for the 2027 fiscal year. The House of Representatives' Budget Committee said the proposal would be submitted to the finance minister for consideration in drafting the 2027 state budget.

"If approved, the additional spending could significantly increase expenditure in the state budget and widen the fiscal deficit," Phintraco Sekuritas said.

Phintraco also pointed to the government's plan to establish the National Industrial Estate Council (DKIN), a cross-ministerial coordinating body aimed at strengthening the management and development of industrial estates.

The council would be chaired by the president, with the vice president serving as deputy chair and the industry minister as executive chair. Members would include representatives from relevant ministries, government agencies, and other stakeholders.

"If implemented effectively, the establishment of the DKIN is expected to resolve cross-sector bottlenecks and improve competitiveness. On the other hand, creating a new institution may run counter to the government's goal of streamlining bureaucracy," Phintraco Sekuritas said.

Kiwoom Sekuritas Indonesia said market sentiment had turned more positive as investors shifted their focus back to technology stocks following last week's sharp correction. However, investors remain cautious ahead of Thursday's US employment report, which is expected to provide fresh clues on the Federal Reserve's interest rate path.

Across Asia, Japan's Nikkei 225 rose 0.61% as of 8:59 a.m. Jakarta time. South Korea's Kospi slipped 0.31%, Hong Kong's Hang Seng fell 0.42%, and China's Shanghai Composite edged down 0.16%.

US equities rebounded overnight after a rare losing week. The S&P 500 climbed 1.2%, snapping a five-session losing streak, while the Dow Jones Industrial Average gained 306 points, or 0.6%. The tech-heavy Nasdaq Composite outperformed with a 2.1% rally.

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