FX.co ★ Indonesia Equities Extend Drop, Poised for Weekly Dip

Indonesian stocks declined by 11 points, or 0.1%, to 8,606 during early Friday trading, marking a second consecutive session of losses. This movement puts the IDX benchmark on track for its first weekly decline in four weeks, down by 0.2% to date. Investor sentiment remained cautious ahead of Bank Indonesia's final policy meeting set for next week, due to concerns that the recent disaster in Sumatra could elevate inflation by disrupting logistics and supply chains. Additionally, some traders capitalized on the index's recent record highs, impacting sectors such as communications, healthcare, and logistics. These losses were partially mitigated by reports that domestic lenders anticipate loan growth of 9–11% in 2026 following this year's subdued demand. In China, a significant trade partner, President Xi Jinping declared 2025 to be "a truly extraordinary year," forecasting the achievement of major targets. Notable underperformers included Mora Telematika, down by 14.0%, Garuda Indonesia by 3.6%, Multipolar Tech by 2.8%, Bank Mandiri by 2.0%, and Tower Bersama Infrastructure by 1.6%.