FX.co ★ Indonesia Stocks Plunge to Near 6-Week Low

Indonesia’s IDX Composite dropped 295 points, or 3.7%, to 7,643 in Wednesday morning trade, marking a third consecutive decline and its lowest level in nearly six weeks. The sell-off followed weakness in U.S. stock futures amid escalating tensions in the Middle East. Sentiment was further weighed down by February’s official PMI data from China—Indonesia’s key trading partner—which showed declines in both manufacturing and services activity after the extended Lunar New Year holiday, in contrast to more resilient readings from private surveys.

Downside pressure was partially offset by reports that the government in Jakarta is preparing a sizeable Eid al-Fitr fiscal stimulus package for civil servants and gig workers to cushion the impact of external headwinds. At the same time, Bank Indonesia indicated it is closely monitoring potential inflation pass-through from higher global energy prices.

Losses on the IDX were broad-based, led by basic materials, transportation, and cyclical sectors. Among the notable decliners were Indah Kiat Pulp & Paper (-8.5%), Merdeka Battery Materials (-7.1%), Merdeka Copper Gold (-5.5%), and Telkom Indonesia (-4.9%).