Jakarta. Indonesia’s benchmark stock index opened lower on Tuesday as investors stayed on the sidelines ahead of key market classification reviews by MSCI and S&P Global.

Jakarta Composite Index (JCI) fell 20 points, or 0.33%, to 6,096 in early trading, moving within a range of 6,084–6,102.

RTI data showed that 518.09 million shares changed hands in the opening minutes, with trading value reaching Rp 397.33 billion ($22.24 million) across 54,650 transactions. Gainers slightly trailed losers, with 193 stocks advancing, 203 declining, and 232 unchanged.

According to Phintraco Sekuritas, investors are taking a wait-and-see approach ahead of MSCI’s Annual Market Classification Review on June 24, which will determine whether Indonesia retains its Emerging Market status.

“Investors are also awaiting the outcome of S&P Global Standards’ review of Indonesia’s classification,” Phintraco wrote in a research note on Tuesday.

The brokerage also highlighted investor concerns over several provisions in Law No. 4/2026, which amends the Financial Sector Development and Strengthening Law (P2SK).

One provision requires Bank Indonesia to obtain parliamentary approval for its annual budget, covering operational spending as well as funds allocated for monetary policy, payment systems, and macroprudential policy implementation.

“This has raised concerns among investors regarding the independence of Bank Indonesia as the central bank,” Phintraco said.

Meanwhile, Kiwoom Sekuritas Indonesia said the government is preparing to integrate artificial intelligence (AI) into national priority programs under a draft presidential regulation covering 2026–2029.

The initiative would deploy AI in programs such as the Free Meal Program (MBG) scheme and public health services. Planned applications include region-based menu optimization, kitchen hygiene monitoring, food demand forecasting, anomaly detection, and health data analysis for early warning systems.

“The policy aims to increase AI’s contribution to 12% of GDP by 2030, equivalent to around $366 billion. However, implementation still faces challenges, including limited computing infrastructure, chip and cloud capacity constraints, and a shortage of AI talent. As a result, Indonesia still has the potential to become a technology user rather than a primary developer,” Kiwoom said.

The brokerage noted that global technology companies, including Microsoft, IBM, and Meta Platforms, are involved in shaping the policy framework. Microsoft has also committed investments in Indonesia to strengthen cloud and AI infrastructure.

“The government is also encouraging the establishment of a sovereign AI fund managed by Danantara Indonesia to accelerate the development of the national AI ecosystem through research funding, talent incentives, and infrastructure strengthening,” Kiwoom added.

Overnight, Wall Street closed mixed as easing oil prices offset concerns over weakness in major technology stocks. The S&P 500 slipped 0.4%, leaving the benchmark 1.8% below its record high reached earlier this month. The Dow Jones Industrial Average gained 0.3%, while the Nasdaq Composite dropped 1.3%.

Across Asia on Tuesday morning, Japan’s Nikkei fell 1.12%, South Korea’s Kospi slid 4.39%, and Hong Kong’s Hang Seng declined 0.21%. China’s Shanghai Composite bucked the trend, rising 0.16%.

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