On Wednesday afternoon, Indonesian stocks experienced a decline, falling by 113 points or 1.2%, reaching 9,011. This drop marked a pullback from the record highs observed in the previous session as traders moved to secure profits. Market sentiment took a hit following President Prabowo's decision to revoke permits for 28 companies across sectors such as forestry, palm oil, cocoa, power generation, and mining. The revocations were attributed to environmental violations linked to the preceding year's floods in Sumatra. The downturn was widespread, with notable declines in property, financial, and infrastructure sectors.
United Tractors witnessed a substantial drop of nearly 15% after its subsidiary, Agincourt Resources—operator of the Martabe gold and silver mine—was impacted by the crackdown. Similarly, Astra International experienced an 11.3% decline due to its investment in United Tractors, while Toba Pulp Lestari saw a minor decrease of 0.8% as it sought clarity regarding the government's actions. A slight recovery in U.S. futures markets helped limit further declines, especially ahead of President Trump's address at the World Economic Forum in Davos. Investors were also anticipating the Bank Indonesia policy announcement, with expectations that interest rates would remain unchanged for the fourth consecutive month.
