FX.co ★ Indonesia Shares Trade Lower

On Tuesday morning, Indonesia's IDX Composite Index experienced a decline of 30 points, or 0.4%, settling at 8,385. This downturn reversed the gains made the previous day and followed an extended decline on Wall Street overnight. Investors were cautiously preparing for a wave of U.S. economic data following the resolution of a government shutdown, while expectations for a Federal Reserve rate cut next month diminished after Vice Chair Jefferson pointed out potential risks to the labor market. Domestically, Jakarta is in the final stages of formulating export tax regulations on gold, proposing a 15% levy on prices exceeding USD 3,200 per ounce. This initiative is part of a broader strategy to enhance non-tax revenue by 2026. The sectors that led the decline included producer manufacturing, consumer durables, and transport, with significant losses from Barito Pacific (-4.2%), Bumi Resources (-3.6%), Impack Pratama Industri (-3.4%), and GojekTokopedia (-3.2%). Market participants are now looking ahead to Bank Indonesia's interest rate decision on Wednesday, as Governor Perry Warjiyo has suggested that persistent low inflation might allow for potential future rate cuts, following a cumulative reduction of 150 basis points since September 2024.