FX.co ★ Indonesia Stocks Retreat in Afternoon Session

Indonesia’s IDX Composite fell 67 points, or 1.0%, to 6,111 on Monday afternoon, erasing earlier gains as worries intensified over further monetary tightening by the central bank, MSCI’s downgrade of the country’s Information Flow accessibility, and FTSE Russell’s removal of several domestic stocks from its indices. MSCI is also scheduled to review later this week whether to reclassify Indonesia as a frontier market, a decision that could trigger substantial capital outflows.

At the same time, U.S. stock futures softened amid renewed uncertainty surrounding the Middle East peace process. In China, Indonesia’s key trading partner, the PBoC left benchmark lending rates unchanged for the 13th consecutive month, highlighting a cautious policy stance as household consumption and investment show signs of cooling.

Losses in Jakarta were broad-based, with basic materials, cyclical shares, and energy stocks leading the retreat. Among the notable laggards were Merdeka Battery Materials (-4.6%), Darma Henwa (-3.8%), Kalbe Farma (-2.9%), and Bank Tabungan Negara (-2.4%).