Indonesia’s IDX Composite sank 91 points, or 1.8%, to 4,939 in Friday morning trade, erasing gains from the previous two sessions after a tech-led selloff on Wall Street overnight, driven by renewed doubts over the profitability of massive AI investments following the U.S. midterm elections. The local market is on track for a second consecutive weekly decline, down 2.4% so far, and trading near a six-year low. The slump reflects mounting fiscal worries over elevated oil prices and the Prabowo administration’s sizeable spending pledges, alongside persistent foreign capital outflows and heightened rupiah volatility.
All major sectors retreated, with the steepest losses in basic materials, infrastructure, energy, and cyclical stocks. Japfa Comfeed dropped 6.9%, followed by Barito Pacific (-6.6%) and Darma Henwa (-6.1%). Even so, the selloff was partly cushioned by stronger-than-expected Q3 GDP data, which bolstered confidence that the 2026 growth target of around 5.4% remains achievable. Meanwhile, regulators imposed sanctions over alleged stock market violations after MSCI issued a warning about a potential downgrade.