FX.co ★ Indonesia Stocks Fall from Record Highs

In early trading on Thursday, Indonesian equities saw a decline of 44 points, or 0.5%, settling at 8,083. This downturn came as traders capitalized on gains following record highs in the two preceding sessions. The IDX Composite mirrored a similarly negative performance on Wall Street overnight, where investors were concerned about pressures on AI market leaders and remained cautious after Federal Reserve Chair Jerome Powell's warning about ongoing inflationary challenges and vulnerabilities in the labor market. The market sentiment in Indonesia was further dampened by a weakening rupiah and sustained foreign capital outflows. Investors are now looking forward to key U.S. economic indicators—such as the final Q2 GDP, initial jobless claims, and PCE inflation data—that may inform the Federal Reserve’s upcoming interest rate decisions. Nevertheless, losses were limited by the OECD's updated projections for Indonesia’s GDP growth, now expected at 4.9% for both 2025 and 2026, which marks an improvement over prior forecasts. Leading the downturn were tech and banking stocks, with significant declines observed in Bank Mayapada (-2.1%), Bank Danamon (-1.3%), BRI (-1.2%), and BCA (-0.6%).