Indonesian Shares Set for Second weekly Decline

Indonesia’s IDX Composite plunged 91 points, or 1.8%, to 4,939 in Friday morning trade, reversing gains from the prior two sessions after a tech rout on Wall Street overnight amid concerns about the profitability of heavy AI investment after the U.S. midterms. Local markets are heading into a second straight weekly fall, down 2.4% so far, and hovering near a six-year low, reflecting fiscal concerns over higher oil prices and the Prabowo administration’s hefty spending commitments, continued foreign capital outflows, and rupiah volatility. All major sectors slid, led by basic materials, infrastructure, energy, and cyclicals. Japfa Comfeed dipped 6.9%, followed by Barito Pacific (-6.6%) and Darma Henwa (-6.1%). Still, losses were partly limited by stronger-than-expected Q3 GDP growth, reinforcing optimism that the 2026 growth target of around 5.4% remains within reach. Meanwhile, authorities enacted sanctions over alleged stock market violations after MSCI warned of a possible downgrade.