Indonesia’s IDX Composite slipped 71 points, or 1%, to 7,091 in early Friday trading, extending the previous session’s losses after an overnight slump on Wall Street. Sentiment soured as U.S. President Trump intensified pressure on Iran, warning of sustained military action and even potential control over its oil resources.
The local benchmark is on course for a fifth consecutive weekly decline, currently down 0.2% for the week, as investors remain cautious ahead of upcoming March inflation figures and February trade data.
On the corporate front, domestic airlines have requested approval for a 15% increase in fuel surcharges and airfare caps in response to surging costs, pointing to early signs of cost-push inflation. However, downside pressure on the market was partly offset by news of an additional IDR 100 trillion liquidity injection into state-owned banks, bringing total support to IDR 300 trillion in an effort to sustain credit growth.
Weakness was broad-based across sectors, led by infrastructure, transportation, and financials. Among the notable decliners were Sumber Alfaria Trijaya (-4.1%), Adaro Andalan Indonesia (-2.5%), Indosat (-2.3%), and Bank Central Asia (-2.0%).
