31 August 2026
Market Summary:
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Global Equity: Global equities ended the week modestly higher (MSCI World: +0.33% WoW) ahead of the Fed Chair’s address at Jackson Hole.
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Domestic Equity: The JCI slipped -0.12% for the week but held above the 6,500 level, supported by foreign inflows of IDR279bn.
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Domestic Bond Market: The 10Y and 2Y IndoGB yields rose 5bps WoW to 7.00% and 6.69%, respectively, amid foreign outflows of IDR1.59tn, while the rupiah remained stable.
Key News of The Week:
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US headline PCE inflation came in at +3.7% YoY in July, flat from the prior month, while core PCE rose +3.3% YoY. Goods prices fell -0.1%, driven by a drop in gasoline and energy-related goods, while services inflation increased +0.3%.
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In his Jackson Hole speech, Fed Chairman Kevin Warsh expressed concern about elevated inflation, hinting that interest rates may need to move higher if price pressures persist. At the same time, he voiced confidence in the US economy, which has been supported by AI-related investment and resilient consumer spending. The probability of a September rate hike rose to 55.7% after the speech, according to the CME Group FedWatch tool.
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Destry Damayanti was approved by a parliamentary commission as BI Governor for 2026–2031, with final confirmation expected at a plenary session on September 1. During her vetting, Destry pledged policy continuity, with financial stability, inflation control, and rupiah stability remaining the foundation of BI’s strategy, alongside its expanded role in supporting growth and job creation. She affirmed close coordination with the government while preserving BI’s independence.
Our View
The next week NFP report is the single most important data point before the FOMC convenes. A weak print that validates the labor supply plateau thesis would keep wage inflation concerns alive and give Warsh’s hawkish framing its clearest empirical backing yet. Domestically, if Indonesia’s July trade balance turns positive, it could help shield the Rupiah against external pressure.
Product Recommendation:
RD MISB, RD MMUSD, RD IDAMAN, RD MIDU, RD MIDSYA, RD MGSED, RD MASED, MICB, MITRA, MITRAS, RD FTSE, ETF LQ45, ETF SRI Kehati, ETF Mandiri Emas Syariah.
Discover a detailed analysis of this week’s market performance in our comprehensive Weekly Market Recap: Read More
| PRODUCT | 3M PERFORMANCE | YTD PERFORMANCE |
|---|---|---|
| JCI | +7.07% | -24.53% |
| LQ45 | +4.57% | -23.86% |
| EQUITY | ||
| MITRA A | +5.84% | -14.84% |
| MICB A | +5.65% | -14.63% |
| ASEAN5 | +3.54% | -17.28% |
| MGSED | -2.16% | +11.70% |
| INDEX | ||
| FTSE ESG A | +3.90% | -16.45% |
| ETF | ||
| XMLF | +5.75% | -20.27% |
| BALANCED | ||
| MISB | -7.44% | -7.92% |
| MIA | -10.44% | -10.18% |
| FIXED INCOME | ||
| MIDU A | -0.20% | -0.46% |
| MIDO2 | -1.63% | -1.99% |
| IDAMAN A | -3.14% | -3.35% |
| MONEY MARKET | ||
| MIPU A | +1.83% | +1.70% |
| MMUSD | +1.73% | +1.63% |
*The data above is as of August, 21th, 2026
For More Information
Contact Mandiri Investasi – (021) 526 3505
Email Mandiri Investasi – [email protected]
Mandiri Investasi – mandiri-investasi.co.id
DISCLAIMER
The information and opinions expressed in this article are for general informational purposes only and are not intended as specific advice or recommendations for any individual, security, or investment product. The content is meant to provide education about the financial industry. Opinions and views presented may change without prior notice. All performance data and investment returns mentioned in this article should not be used as a guarantee or basis for decisions to buy or sell any securities. The data reflects historical performance and does not guarantee future results. Investing in mutual funds carries risks. Investors are advised to carefully read and understand the prospectus before making any investment decisions.
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