FX.co ★ Indonesian Stocks Poised for Steep Weekly, Monthly Decline

Indonesia’s IDX Composite slumped 95 points, or 1.9%, to 5,005 in Friday morning trade, deepening earlier losses and setting the index on course for a weekly decline of about 8%, effectively erasing the previous week’s gains. Sentiment was hurt by weaker U.S. stock futures after Alphabet suffered a historic share-price drop, which dragged Wall Street lower overnight and reignited worries about the payoff from massive AI-related investments.

On the domestic front, market pressure was compounded by ongoing political tensions, with student-led protests continuing in major cities since early October. The rupiah’s persistent weakness, rising fiscal concerns amid oil prices holding above USD 100 per barrel, and sustained foreign net selling further weighed on risk appetite. Inflation anxieties also intensified ahead of next week’s October data release.

All sectors moved lower, with the heaviest losses in basic materials, infrastructure, transportation, and energy. Notable decliners included Barito Pacific (-7%), Surya Citra Media (-6.9%), and Telkom Indonesia (-2.3%). For October to date, the benchmark index has dropped 17.5%, leaving it on track for a second consecutive monthly decline.