Jakarta (ANTARA) – Indonesia’s benchmark stock index rose on Wednesday as investors adopted a wait-and-see stance ahead of interest-rate decisions from Bank Indonesia and the US Federal Reserve, while monitoring key market events later this week.The Jakarta Composite Index opened 66.99 points, or 1.07 percent, higher at 6,321.96. The LQ45 index of blue-chip stocks gained 5.46 points, or 0.87 percent, to 630.14.Kiwoom Securities advised investors to wait for a decisive break above the 6,300 level before increasing positions, citing potential volatility from Bank Indonesia’s policy meeting and upcoming MSCI and FTSE reviews.Globally, 40 percent of fund managers expect the Federal Reserve to raise rates within the next 12 months, up from 16 percent previously. Meanwhile, 55 percent expect Fed Chair Kevin Warsh to maintain a hawkish tone.Kiwoom’s Liza Camelia Suryanata said global sentiment remains broadly constructive, although investor positioning has become increasingly divergent across regions.She said investors have turned more defensive. Overweight allocations to global equities fell to 38 percent from 50 percent, while technology exposure declined to 26 percent from 33 percent.By contrast, allocations to Japan, materials and banking stocks increased. Long positions in global semiconductor shares became the most crowded trade in the survey’s history, she said.Oil prices fell ahead of a planned memorandum of understanding between the United States and Iran in Switzerland on June 19, easing concerns over potential supply disruptions.US President Donald Trump said the Strait of Hormuz would fully reopen on Friday and that follow-up negotiations would continue for 60 days, although details remain unclear.Israeli Prime Minister Benjamin Netanyahu has reportedly objected to any agreement that does not fully dismantle Iran’s ballistic missile program and regional proxy networks.Domestically, investors are awaiting MSCI’s Global Market Accessibility Review, FTSE index rebalancing on June 19, and Bank Indonesia’s policy meeting, where rates are expected to rise 25 basis points to 5.75 percent.Indonesia also plans to issue Panda Bonds around late June or early July, depending on investor demand for the offering.The Panda Bond issuance is intended to reduce reliance on the US dollar and help strengthen the rupiah over the longer term.The World Bank maintained its forecast for Indonesia’s economy to expand 5.0 percent in 2026 and 5.2 percent in 2027-2028, supported by domestic consumption, investment and government spending.The lender said fiscal deficits are expected to remain below three percent of gross domestic product during the forecast period.However, it said sustaining long-term growth will require productivity reforms, higher state revenue, more efficient public spending and improvements in logistics and trade.