FX.co ★ Shares in Indonesia Slip in Afternoon Session

Indonesian stock markets experienced a decline of 36 points, equivalent to 0.4%, settling at 8,354 by Tuesday afternoon. This downturn followed a lackluster performance the previous day. Investor confidence was shaken by news indicating that domestic banks remain cautious in extending credit to small businesses, despite governmental initiatives aimed at enhancing financial inclusion and fostering economic growth. Concerns in the labor market persist, as metrics for youth unemployment and temporary employment contracts showed an upward trend in Indonesia during the third quarter of 2025. On the global stage, U.S. futures saw a downward trend, with investors adopting a cautious approach as the legislation to conclude the country's longest governmental shutdown progressed to the House for a decisive vote. However, the impact of these losses was mitigated to some extent by stronger retail sales figures in Indonesia for September, alongside a notable rise in consumer confidence reaching a six-month peak in October. These indicators reflected a relaxation in inflation pressures and sustained fiscal support within the economy. Amongst sectors, utilities, non-energy minerals, and consumer non-durables underperformed, highlighted by a 2.2% drop in Barito Renewables Energy, and similar declines in Dian Swastatika Sentosa (-2.1%), Bank Central Asia (-2.0%), and Bank Rakyat Indonesia (-1.3%).