FX.co ★ Indonesia Stocks Retreat from Record Peak

On Wednesday morning, Indonesian markets experienced a decline, with shares dropping 78 points, or 0.8%, to settle at 9,061. This decrease comes after a record high in the previous session, as investors capitalized on profits. The downturn reflected a general weakness in Asian markets, triggered by renewed geopolitical tensions following the United States’ fresh proposition to acquire Greenland, ahead of President Trump’s address at the World Economic Forum in Davos and the emergency EU summit in Brussels. Additionally, investor sentiment was impacted by apprehensions in the mining and plantation sectors, as authorities prepared to confiscate approximately 190,000 hectares of contested mining land as part of a crackdown on illegal extraction activities. However, Finance Minister Purbaya Yudhi Sadewa provided some relief by noting that net foreign inflows remained positive over the last three months. The sectors most affected were property, healthcare, and financials, with significant declines seen in United Tractors (-14.3%), Astra International (-10.0%), Bumi Resources (-3.9%), and Bank Central Asia (-1.3%). Market participants now focus on the central bank's impending interest rate decision later today.