FX.co ★ Indonesia Stocks Slide as Moody’s Cuts Outlook

In Friday morning trading, Indonesia's IDX Composite experienced a decline of 130 points, or 1.5%, settling at 7,976, following losses from the previous session. This downturn comes in the wake of Moody's Investors Service revising the country's sovereign credit rating outlook from stable to negative. The revision was attributed to perceived reductions in policy predictability and weaker governance under President Prabowo, who assumed office in October 2024. However, Moody's maintained the country's Baa2 rating. On Thursday, official data revealed that the economy grew by 5.11% in 2025, falling short of the government's 5.2% growth target despite strong performance in the fourth quarter. Nonetheless, the impact of this weakness was moderated by fiscal commentary, with officials striving to counter pessimistic deficit discussions and suggesting there is available policy flexibility. The selling pressure was widespread, impacting sectors such as energy, finance, and real estate. Significant decliners included Impact Pratama Industri with a 4.7% drop, Merdeka Copper Gold at 4.3%, Vale Indonesia at 3.6%, and Astra International at 2.2%. On a weekly basis, the market is heading towards its third consecutive decline, having decreased by 4% so far.