Indonesian shares tumbled 140 points, or 2.5%, to around 5,457 in Monday morning trading, extending their losing streak to a fourth consecutive session and marking the lowest level since November 2020. The sell-off mirrored declines across regional markets following reports of an Iranian missile strike on Israel, which reignited concerns over the fragile ceasefire and broader geopolitical risks.
On the domestic front, heavy capital outflows accelerated, with the market now down more than 30% year-to-date. At the same time, the rupiah repeatedly touched record lows, reflecting investor anxiety over President Prabowo’s expansive fiscal agenda and ballooning fuel subsidies linked to the conflict in the Middle East. Weekend assurances from the central bank governor and the finance minister—pledging higher yields on local assets to attract investors—were insufficient to halt the slide.
Losses were broad-based, with transport, energy, industrials, and other cyclical sectors among the hardest hit. Notable decliners included MD Entertainment (-12.1%), Impack Pratama Industries (-10.5%), Vale Indonesia (-9.8%), and Hartadinata Abadi (-8.0%).
