The Jakarta Composite Index, known as IHSG, closed the first trading session in negative territory on Wednesday, at 5,179.06, down 87.07 points or 1.65 percent. Trading volume reached 164.77 million lots, worth 7.25 trillion rupiah. Investors were cautious through the session, with the index briefly recovering toward 5,250 around 09:30 WIB before sliding to around 5,180 after 10:00 WIB.
Much of the caution was tied to the Federal Reserve. Markets were waiting for the central bank’s rate decision, scheduled for 01:00 WIB on Thursday, with the press conference due 30 minutes later. Consensus expects the policy rate to be held in a range of 3.75 to 4.00 percent, after a 25 basis point hike in September. Kevin Warsh, the Fed figure named in the context, was also drawing attention ahead of the announcement.
Domestic bond demand weakens
Sentiment at home was also soft. The government’s rupiah bond auction on Tuesday drew total incoming bids of 31.09 trillion rupiah, down 52.1 percent from the previous auction. The government absorbed 20.65 trillion rupiah, short of its indicative target of 30 trillion rupiah.
The weighted average yield on the roughly 10-year SUN series rose to 7.54 percent in the auction, a rise of 30 basis points over two weeks and 147 basis points since early 2026.
China profits offer some support
China’s industrial profits gave a more encouraging picture. Profits rose 15.5 percent year on year in the first nine months of 2026 to 6.03 trillion yuan, and grew 15.7 percent in January to August. State-owned enterprise profits rose 13.1 percent to 1.94 trillion yuan, joint-stock company profits rose 20.8 percent to 4.67 trillion yuan, and private enterprise profits rose 8.7 percent to 1.51 trillion yuan.
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