The Indonesian stock market, which rose 6.9 percent this week, is expected to come under pressure this week due to concerns about high inflation, an analyst said.
"The outlook for this week is not very good. I'm very concerned about interest hikes," said David Chang, head of research at Kresna Securities.
Bank Indonesia will meet on Tuesday and analysts expect the central bank will raise its key rate to 14 percent, against 12.25 percent currently, in response to higher-than-expected inflation in November.
The Central Bureau of Statistics said Thursday inflation stood at 18.38 percent year-on-year and analysts warned that the jump would put more upward pressure on interest rates.
Chang said looming interest hikes by the central bank and the US Federal Reserve would also put pressure on the Indonesian market and the rupiah.
An impending reshuffle of economic ministers will not change the fundamentals of Indonesia's economy, he said.
"For the short term we'll probably see some weakness in the market," he said.
President Susilo Bambang Yudhoyono on Friday said he had asked former finance minister Budiono to join his cabinet as part of a shake up in his much-criticised economic team.
For the week ending December 2, the Jakarta Stock Exchange composite index rose 72.017 points or 6.9 percent to close at 1,119.417. Daily average volume totalled 1.25 billion shares worth 1.13 trillion rupiah (113 million dollars).