Indonesia Stocks Retreat Further as Week Opens
Indonesian equities slipped 47 points, or 0.7%, to 6,392 in early Monday trade, extending previous losses as weakness in energy, infrastructure, and financials weighed on sentiment. Caution grew ahead of Bank Indonesia’s policy meeting later this week amid renewed rupiah pressure and signs of foreign outflows. Inflation risks also mounted on elevated oil prices and potential El Niño effects. Still, declines eased after the Finance Minister pledged refunds to taxpayers and businesses that overpaid, in line with regulations, while vowing to safeguard fiscal credibility and keep the deficit below 3% of GDP. In its main trading partner, China, the central bank held benchmark lending rates steady for a 16th straight month ahead of a bilateral summit between China President Xi Jinping and U.S. President Donald Trump. Notable laggards included Adaro Andalan (-3.3%), XLSmart Telecom (-2.0%), Indosat (-1.7%), and Telkom Indonesia (-1.6%).
7%, to 6,392 in early Monday trade, extending previous losses as weakness in energy, infrastructure, and financials weighed on sentiment. Caution grew ahead of Bank Indonesia’s policy meeting later this week amid renewed rupiah pressure and signs of foreign outflows. Inflation risks also mounted on elevated oil prices and potential El Niño effects. Still, declines eased after the Finance Minister pledged refunds to taxpayers and businesses that overpaid, in line with regulations, while vowing to safeguard fiscal credibility and keep the deficit below 3% of GDP.
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