FX.co ★ Indonesia Stocks Retreat to 8-Month Low

Indonesia’s IDX Composite fell 88 points, or 1.2%, to 7,049 in early Monday trade, extending its decline for a fourth consecutive session and marking its lowest level since mid-July 2025. Sentiment weakened as investors assessed inflationary risks stemming from the Middle East conflict, which has pushed oil prices higher and clouded the global economic outlook. Caution also dominated as Bank Indonesia commenced its policy meeting, with a rate decision due Tuesday, amid signs of rising domestic inflation during Ramadan and Eid al-Fitr.

Authorities have indicated that subsidized fuel prices will remain unchanged throughout the festive period, though persistently elevated oil prices could eventually compel Jakarta to adjust its policy. Seasonal spending, particularly from festive allowances, helped cushion the market’s losses. All sectors traded in negative territory, led by energy, infrastructure, and non-cyclical stocks. Major laggards included Barito Pacific (-4.7%), Sumber Alfaria Trijaya (-3.1%), Vale Indonesia (-2.2%), and Indo Tambangraya Megah (-1.5%).