FX.co ★ Indonesian Shares Retreat as Profit-Taking Hits Record Highs

Indonesian equities experienced a decline of 131 points, or 1.5%, to settle at 8,572 on Thursday afternoon. This downturn marked a reversal of earlier gains as investors engaged in profit-taking following recent record highs. Market sentiment was further dampened by a drop in U.S. futures, attributed to the Federal Reserve's third quarter-point interest rate cut of the year. Although this move was largely expected, the updated dot plot hints at just one more rate cut anticipated in 2026.

Meanwhile, in China—Indonesia's leading trading partner—the rollout of new property stimulus measures could be delayed. This follows the recent Politburo meeting in December, which notably omitted any reference to urbanization strategies. Domestically, attention is shifting towards Bank Indonesia's upcoming policy meeting next week, amid rising concerns that the recent disaster in Sumatra might push inflation higher due to disruptions in logistics and supply chains.

On the trade front, preliminary agreements with Washington have reached an impasse, as the United States confronts Indonesia over its reversal of previously made commitments. Nearly all industry sectors saw declines, with significant losses posted by Unilever Indonesia (-4.4%), Astra International (-4.2%), Telkom Indonesia (-3.0%), and Hanjaya Mandala Sampoerna (-2.7%).