Indonesian shares fell 50 points, or 0.8%, to 6,078 in early trading on Wednesday, extending losses to a sixth consecutive session amid persistently weak market sentiment. Investors remained cautious after the abrupt departure of Perry Warjiyo from his role as central bank governor, despite assurances from the Cabinet Secretary’s office that the leadership transition would be conducted in a transparent and accountable manner. Confidence was further pressured by growing doubts over the government’s ability to stem job losses as layoffs continue to rise.
Externally, U.S. stock futures softened after a mixed finish on Wall Street overnight, with investors awaiting a slate of major corporate earnings releases and the Federal Reserve’s interest rate decision due later in the day. However, declines in Jakarta were partially limited by reports that the government is in talks with the United States to secure a palm oil tariff exemption under the new 10% tariff regime, in an effort to safeguard export competitiveness.
On the corporate front, notable decliners included Surya Citra Media (-2.5%), Aneka Tambang (-2.1%), and Alamtri Minerals (-1.4%).
