FX.co ★ Stocks in Indonesia Hit Near 3-Year Low

Indonesia's IDX Composite index dropped sharply, plummeting 546 points, or 8.4%, to reach 5,963 by Tuesday morning—a low not seen since May 2021. This dip occurred as trading reopened after the extended Eid-al-Fitr holiday and amid growing recession concerns fueled by the ongoing global trade war. Trading was temporarily paused for 30 minutes after the index experienced a dramatic drop of over 9%, before resuming operations. Investor sentiment was cautious following President Trump's warning on Monday regarding the imposition of additional tariffs on China, contingent upon Beijing retracting its retaliatory tariffs. Domestically, market participants remained vigilant regarding the health of the financial sector and the economy, particularly focusing on the budget deficit. This scrutiny persists despite assurances from the finance ministry that the country's fiscal policy remains stable, maintaining the deficit at 2.53% of GDP. Notably, Indonesia will not counter Trump's newly imposed 32% trade tariff on its exports. Every sector reported losses, with significant declines in Bank Rakyat Indonesia (-10.6%), Bank Central Asia (-10.5%), Telekomunikasi Indonesia (-10.0%), and Bank Mandiri (-9.8%).