Jakarta stocks fell to profit taking on Thursday after gains in the previous two sessions and dealers said the index would hover around current levels in the near term.
The Jakarta composite index slipped 0.76 percent to 758.18 points in modest turnover estimated at 550 billion rupiah ($59.6 million). Losers beat gainers 78 to 32 while 80 issues were flat.
Adrian Rusmana, head of research at BNI Sekuritas, said the September 20 presidential election might provide some momentum for the market, although he expected it to be short lived as the new government would have to tackle lingering economic problems.
Indonesia held parliamentary elections in April and a new government will take office in October.
Among the biggest blue chip losers were telecom bellwether PT Telekomunikasi Indonesia Tbk (Telkom), which fell 1.3 percent to end at 7,600 rupiah on Thursday after rising two percent the day before.
Indonesia's fifth-largest bank, PT Bank Danamon Tbk, bucked the down trend. It rose 3.76 percent to end at 3,450 rupiah, helped by foreign buying.
Oil and gas company PT Medco Energi Tbk dropped 4.84 percent to 1,475 rupiah after soaring more than 20 percent on Wednesday.
There were media reports that Indian Oil Corp may buy a 40 percent stake in the firm from a Thai company. Medco could not confirm the reports on Thursday.