FX.co ★ Indonesia Shares Hit Two-Week Low, Weekly Loss Looms

Indonesia’s IDX Composite fell 103 points, or 1.4%, to 7,275 in Friday morning trade, extending the previous session’s losses and hitting a two-week low. Sentiment was weighed down by the overnight decline on Wall Street, a fragile ceasefire in the Middle East, and stalled U.S.–Iran peace talks.

Market nerves were further rattled by reports that President Trump ordered the U.S. Navy to “shoot and kill” Iranian boats laying mines in the Strait of Hormuz. On the financial front, Fitch revised the credit outlook for four major Indonesian banks—Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, and Bank Negara Indonesia—from stable to negative.

For the week, the IDX Composite is on course for a roughly 4% decline, paring back recent gains. Downside pressure, however, was partially offset by government efforts to secure 150 million barrels of Russian oil as part of its broader energy strategy.

Losses were broad-based, with infrastructure, basic materials, and cyclical stocks leading the declines. Among the notable laggards were Bank Tabungan Negara (-6.4%), Medco Energy (-4.2%), and Unilever Indonesia (-3.3%).