Ria Fortuna Wijaya, Jakarta – Indonesian stocks closed lower on Monday as concerns over a widening current account deficit and rising geopolitical risks weighed on investor sentiment.

The Jakarta Composite Index (JCI) fell 24.02 points, or 0.37%, to close at 6,501.6. A total of 276 stocks advanced, 384 declined, and 303 remained unchanged, with trading turnover reaching Rp 14.2 trillion ($801.42 million).

Pilarmas Investindo Sekuritas said domestic sentiment was pressured by concerns over Indonesia's current account deficit, which had widened to its highest level on record.

The widening deficit came as the country's goods surplus narrowed while energy import costs increased, raising concerns among investors over potential pressure on Indonesia's external position and sentiment toward the domestic equity market.

External factors added to the pressure. Asian markets generally weakened alongside a decline in US stock futures as investors awaited a press conference by US Treasury Secretary Scott Bessent regarding plans for additional sanctions on Iran.

"Iran previously said that the threat of sanctions would not weaken Tehran. These developments have added to the geopolitical uncertainty hanging over global financial markets," Pilarmas wrote in its Monday research note.

Investors across the region were also watching developments in China ahead of a meeting of the Standing Committee of the National People's Congress scheduled for Aug. 25-28, looking for signals of fresh economic policies.

"Attention has increased after a number of Chinese economic indicators showed disappointing performance. Investors are hoping the Chinese government will introduce additional measures to strengthen economic growth," Pilarmas said.

Regional markets also closed in the red. Tokyo's Nikkei fell 0.7%, while South Korea's Kospi plunged 3.1%. Hong Kong's Hang Seng declined 1.9%, and the Shanghai Composite slipped 0.6%.

Source: https://jakartaglobe.id/business/jci-falls-as-record-current-account-deficit-rattles-investor