FX.co ★ Indonesia Stocks Set to Post Steep Weekly Loss

The IDX Composite Index of Indonesia fell by 115 points, or 1.3%, to reach 8,877 by midday on Friday, marking a three-day consecutive decline. The index is on course for its first weekly decline in four weeks, having dropped 2% so far. The market was pressured by persistent foreign sell-offs affecting stocks tied to energy and resources. Additionally, concerns were raised over the impending changes to MSCI's methodology, which might lead to further capital outflows in the future. Investor sentiment was further dampened by the government's move to revoke forest exploitation permits in Sumatra due to regulatory violations in flood-affected areas. This decision has increased risks for companies within the Astra Group, including United Tractor and Astra Agro Lestari. However, the downturn was somewhat cushioned by expectations that the central bank might resume its cycle of rate cuts to support economic growth. In a positive development, the International Monetary Fund (IMF) has revised Indonesia's GDP forecast for 2026 to 5.1%, up from 4.9%, and its 2027 projection to 5.1%, up from 5.0%. The hardest-hit sectors were energy, industry, and cyclicals. Notable declines were seen in the stocks of Petrosea, which fell 14.4%, Buana Lintas Lautan, down 8.6%, and Lippo Karawaci, which declined by 3.1%.