After resumption of trading after the halt, the Jakarta Composite fell as much as 7.1%. The losses were led by PT DCI Indonesia, a provider of data center services, which fell 20%, and PT Bank Rakyat Indonesia, which was the second-biggest point contributor to the downside.
The next threshold of a 10% fall could trigger another trading suspension. The Indonesian Rupiah has weakened 0.3% on Tuesday, maintaining its status as the worst performing currency
Growth concerns are mounting for Southeast Asia’s largest economy after President Prabowo Subianto issued directives to reallocate funds towards his priority projects. With the state revenue dropping more than 20% compared to last year, Indonesia reported a rare budget deficit earlier this year.
Tuesday’s rout is linked to position unwinding and forced liquidations, especially by margin traders, said Mohit Mirpuri, fund manager at SGMC Capital Pte. “Sentiment is still weak and no fresh inflows to support the market ahead of the long break.”
Some of the other factors contributing to this stock market route include a stronger US Dollar, and escalating trade tensions. This has led to an investor exodus, with foreign funds pulling about $1.65 billion so far on a net basis in 2025, according to Bloomberg data.
The focus now is on the country’s central bank’s policy decision on Wednesday as the street hopes for a possible intervention to stabilise the currency and boost growth.
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