2026.07.2402:47:34UTC+00Indonesia Stock Under Strain as Tariff Shock Hits

Indonesian shares fell 95 points, or 1.5%, to 6,219 in Friday morning trade, extending losses into a third consecutive session. The decline followed a sharp sell-off on Wall Street overnight after the Trump administration announced it would impose new tariffs on 60 trading partners, replacing the temporary 10% levies set to expire today.

Pressure was broad-based across major sectors, with cyclicals, transportation, infrastructure, and basic materials leading the declines. Notable laggards included Petrindo Jaya Kreasi (-6.0%), Bumi Resources (-3.8%), Charoen Pokphand (-3.6%), and Bank Mandiri (-3.2%).

Despite the pullback, the local market remains on track for a modest weekly gain, up about 0.2% so far, which would mark a third straight week of advances. Sentiment has been supported by an unexpected decision from the central bank to pause its policy tightening cycle after delivering a total of 100 basis points in rate hikes since May.

Meanwhile, the government continues efforts to improve fiscal efficiency, cutting its free school meals budget further and trimming allocations for defence and police spending.