FX.co ★ Indonesia Stocks Drop to Four-Week Low After FM Replacement

The IDX Composite declined by 110 points, or 1.4%, reaching 7,657 during Tuesday morning trading. This marked the index's third consecutive session of losses and its lowest point in four weeks. The downturn coincided with the government's recent cabinet reshuffle, which saw Finance Minister Sri Mulyani Indrawati replaced. Purbaya Yudhi Sadewa, an economist serving as Chairman of the Deposit Insurance Corporation, has stepped in as the new Finance Minister. Investor concerns have mounted over potential populist spending initiatives under President Prabowo Subianto, which could undermine the fiscal discipline established over recent years. On Monday, Purbaya expressed commitment to accelerating economic growth, asserting that the president’s 8% growth target is achievable. Despite the local market's decline, a positive session on Wall Street provided some relief, buoyed by expectations of potential Federal Reserve interest rate cuts in light of a lackluster August employment report. Nonetheless, all sectors remained in negative territory, with the financial sector experiencing the most significant losses. Notable decliners included BRI, BNI, BCA, Bank Mandiri, and Bank Danamon, with drops of 3.1%, 3.1%, 2.6%, 2.2%, and 1.6%, respectively.