FX.co ★ Indonesian Shares Drop for 3rd Session

Indonesia’s IDX Composite slipped 30 points, or 0.4%, to 6,354 in Tuesday morning trade, extending losses into a third session as investors stayed cautious ahead of Bank Indonesia’s policy decision. The central bank opened its two-day meeting today amid renewed pressure on the rupiah and persistent inflationary risks. At the same time, lawmakers continued debating revisions to the 2003 fiscal law that could permit a higher budget deficit to finance social and welfare programs. Finance Minister Suahasil Nazara emphasized that any discussion of changes to the statutory deficit ceiling of 3% of GDP should be conducted constructively. Losses on the local bourse were partly limited by robust gains on Wall Street overnight, supported by optimism over Meta Platforms’ new AI agent. Easing concerns about supply disruptions in the Middle East also lent some support, as diplomatic efforts to defuse the U.S.-Iran conflict resumed. On the downside, Bukit Asam (-2.3%), Bank Rakyat Indonesia (-1.8%), and Perusahaan Gas Negara (-1.3%) underperformed, while Medco Energi (4.4%), Amman Minerals (3.4%), and Charoen Pokphand (2.3%) posted solid gains.