Jakarta. Indonesian stocks extended their decline on Wednesday as concerns over a reported government plan to centralize commodity exports continued to weigh on sentiment, while investors also braced for a potential Bank Indonesia rate hike and President Prabowo Subianto’s fiscal policy address to parliament.

Jakarta Composite Index (JCI) fell 18 points, or 0.29%, to 6,352 in early trading, moving within a range of 6,295 to 6,355.

RTI data showed that 802.72 million shares changed hands in the opening minutes, with trading value reaching Rp 460.61 billion ($26 million) across 79,697 transactions. A total of 122 stocks advanced, 336 declined, and 190 were unchanged.

Phintraco Sekuritas said the JCI closed down 3.46% at 6,370 on Tuesday after selling pressure intensified following rumors that the government plans to regulate commodity exports through a new state-backed agency.

The brokerage said commodities reportedly targeted under the scheme include coal, crude palm oil (CPO), and metal minerals.

“The rumors raised investor concerns over potential price controls that could pressure corporate profit margins,” Phintraco Sekuritas wrote in a research note on Wednesday.

From a technical perspective, the brokerage noted that the JCI closed below the 6,400 level with rising selling volume.

“As a result, the JCI is expected to test support levels at 6,250-6,300 today,” Phintraco Sekuritas said.

Investors are also closely watching President Prabowo, who is scheduled to attend a plenary session at the House of Representatives on Wednesday to deliver the government’s 2027 Macroeconomic Framework and Fiscal Policy Principles (KEM-PPKF).

“This marks the first time a sitting president will directly present the KEM-PPKF document before parliament, which is usually delivered by the finance minister,” Phintraco Sekuritas said.

Market participants are meanwhile awaiting the outcome of Bank Indonesia’s policy meeting later on Wednesday. Consensus forecasts point to a 25-basis-point increase in the BI Rate to 5% to help stabilize the rupiah.

Phintraco Sekuritas also noted that April credit growth is projected to accelerate to 9.7% year-on-year from 9.49% in March 2026, with the data due for release later today.

On the fiscal side, the brokerage highlighted that the state budget deficit narrowed to Rp 164.4 trillion, or 0.64% of GDP, as of April 30, from Rp 240.1 trillion, or 0.93% of GDP, in March.

“The improvement was supported by the primary balance returning to a Rp 28 trillion surplus at the end of April 2026 from a Rp 95.8 trillion deficit in March,” Phintraco Sekuritas said.

State revenue rose to Rp 918.4 trillion from Rp 574.9 trillion previously, although government spending also climbed to Rp 1,082.8 trillion from Rp 815 trillion.

Global sentiment remained weak after Wall Street retreated overnight as persistent inflation concerns pushed bond yields higher.

The S&P 500 fell 0.7% for its third consecutive decline after hitting a record high. The Dow Jones Industrial Average dropped 322 points, or 0.6%, while the Nasdaq Composite slid 0.8%.

Across Asia on Wednesday morning as of 8:37 a.m. Jakarta time, Japan’s Nikkei fell 1.16%, South Korea’s Kospi dropped 1.16% after earlier sliding as much as 2.83%, Hong Kong’s Hang Seng lost 0.34%, while China’s Shanghai SSE gained 0.92%.

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