FX.co ★ IDX Composite Slips, Weekly Decline Looms

In early Friday trading, Indonesia's IDX Composite index declined by 21 points, or 0.2%, to 8,597, marking its third consecutive session of losses. The downturn was driven by weaknesses in the consumer services, manufacturing, and logistics sectors. Investor sentiment further deteriorated following a World Bank alert that the recent catastrophic event in Sumatra could negatively impact domestic economic growth, adding pressure on the government to enhance its recovery efforts. For the week, the market is poised to end lower, showing a decline of approximately 0.7%, after enjoying gains for the past four weeks. This decrease is attributed to news that labor unions and business groups have dismissed the government’s proposed wage formula for 2026, criticizing it for insufficient consultation and lack of alignment with current economic conditions. Among the significant fallers were MD Entertainment, which dropped by 9.9%, Impack Pratama Industri, which slid 3.0%, Tower Bersama Infrastructure, which fell by 1.8%, and GojekTokopedia, down by 1.5%. These losses were partially offset by a favorable performance from Wall Street, where a rebound in technology stocks and lower U.S. inflation figures bolstered expectations of potential Federal Reserve rate cuts next year.