Jakarta. Jakarta Composite Index (JCI) slipped in early Tuesday trading as investors weighed easing global geopolitical tensions against lingering concerns over the rupiah and Indonesia’s economic outlook.

JCI fell 4 points, or 0.07%, to 6,201, moving within a range of 6,185 to 6,216.

In the first minutes of trading, volume reached 1.5 billion shares with turnover totaling Rp 805 billion ($45 million) across 114,000 transactions. Gainers outnumbered losers 337 to 162, while 188 stocks were unchanged.

Phintraco Sekuritas said sentiment improved after global crude oil prices declined on expectations that shipping routes through the Strait of Hormuz could reopen.

“The condition has fueled market optimism that global geopolitical tensions may ease,” Phintraco Sekuritas wrote in its Tuesday research note.

The brokerage also highlighted the government’s plan to issue foreign currency-denominated state bonds worth the equivalent of $3.4 billion to strengthen foreign exchange reserves and support the rupiah.

The issuance will consist of $2 billion worth of US dollar bonds and €1.25 billion worth of euro-denominated bonds.

According to Phintraco Sekuritas, the move is expected to improve US dollar liquidity in the domestic market. However, the rupiah weakened 0.15% to Rp 17,744 per US dollar in the spot market on Monday.

“The rupiah’s weakening is seen as being more influenced by market concerns over Indonesia’s economic prospects and declining investor confidence,” the brokerage said.

Phintraco Sekuritas added that the government is set to begin trial implementation of Government Regulation No. 21/2026 on mandatory retention of natural resource export proceeds (DHE SDA) in early June 2026.

Under the regulation, export proceeds must be placed only in state-owned Himbara banks. Retention requirements have also been tightened to a minimum of 30% for three months in the oil and gas sector and 100% for 12 months for non-oil and gas exporters. Conversion of DHE funds into rupiah is capped at 50%.

However, the brokerage noted that the United States is expected to be exempt from the policy because Indonesia has an ART agreement with the US, despite it not yet being ratified.

“The policy could raise questions over the effectiveness of the regulation’s implementation and potentially limit business expansion,” Phintraco Sekuritas said.

Asian markets traded mixed on Tuesday after oil prices plunged more than $4 overnight as US President Donald Trump said talks to end the war with Iran were making progress.

As of 9:08 a.m. Jakarta time, Japan’s Nikkei 225 fell 0.26%, while South Korea’s KOSPI rose 2.92%. Hong Kong’s Hang Seng Index slipped 0.58%, and China’s SSE Composite Index declined 0.93%.

Wall Street was closed on Monday for the Memorial Day holiday.

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