FX.co ★ Mideast Tensions, Fiscal Strains Hit Indonesian Stocks

Indonesian shares fell 50 points, or 0.7%, to 7,056 in Tuesday morning trade, extending losses to a seventh consecutive session and bringing the index close to a three-week low. Market sentiment remained fragile as the outlook for an end to the Middle East conflict stayed bleak. Iran reportedly offered to halt attacks on ships in the Strait of Hormuz in exchange for a complete cessation of the war, but President Trump expressed doubt over the proposal.

On the domestic front, worries intensified after the government’s emergency fund shrank by more than Rp300 trillion, stoking concerns about Indonesia’s fiscal resilience and the risk of a potential financial crisis. Even so, some of the pressure was tempered by growing optimism that the IDX Composite has moved into oversold territory, with several analysts highlighting room for a technical rebound.

Losses were broad-based, with non-cyclical stocks, transport, and energy leading the declines. Notable laggards included Bank CIMB Niaga (-8.9%), MNC Digital (-7.8%), and Triputra Agro Persada (-4.3%). Investors now turn their attention to the upcoming U.S. Federal Reserve rate decision, alongside key domestic releases on April inflation and March trade data.