Indonesia’s annual inflation accelerated to 3.19% in August from July’s three-month low of 2.28%, slightly exceeding expectations but remaining within Bank Indonesia’s 1-1/2%–3-1/2% target range. Monthly inflation rose 0.21%, with food costs affected by El Niño and core inflation reaching its highest level since March 2023 despite remaining relatively contained. Indonesian shares fell 0.5% to 6,566 in Wednesday morning trading as weaker U.S. futures, higher bond yields, oil prices and domestic price pressures weighed on sentiment. A surprise July trade surplus, driven by stronger-than-expected exports, partly offset the decline. The rupiah traded near IDR 17,730 per U.S. dollar on September’s first trading day. House Commission XI approved Destry Damayanti as Bank Indonesia governor for 2026–2031; she will succeed Perry Warjiyo, who abruptly resigned in July. Destry said closer coordination with the government would not compromise central-bank independence, projected 2027 GDP growth at 5.2%–6% and estimated the rupiah at 17,300–17,800 per dollar next year. Infrastructure, energy and non-cyclical stocks led losses, including Petrindo Jaya Kreasi, Vale Indonesia, Alamtri Minerals and Kalbe Farma. Indonesia’s revenue rose 21.3% year on year through July and spending increased 18.2%, while global markets assessed Federal Reserve policy and trade, fiscal and currency signals.