Antara, Jakarta – Indonesia's benchmark Jakarta Composite Index (JCI) fell 1.48 percent on Wednesday as investors remained cautious about domestic security risks, particularly ahead of a planned protest at the House of Representatives complex in Jakarta.
The JCI fell 95.98 points to 6,405.69 by the close. The LQ45 index, which tracks 45 of the most liquid and highly capitalized stocks on the Indonesia Stock Exchange (IDX), declined 1.46 percent to 632.55.
"Market attention is focused on national security stability and macroeconomic fundamentals. Market participants hope the demonstrations will proceed peacefully so that domestic security remains stable," Pilarmas Investindo Sekuritas Associate Director of Research and Investment Maximilianus Nico Demus said in a research note on Wednesday.
Investors were closely watching a planned protest outside the House of Representatives (DPR) and People's Consultative Assembly (MPR) complex on Thursday, August 27. One of the protesters' demands is for the House to pass the Asset Forfeiture Bill.
Fitch flags risks to growth target
Investors were also weighing an assessment by Fitch Ratings, which said the Indonesian government's 6 percent economic growth assumption for 2027 was more realistic.
However, Fitch warned that geopolitical uncertainty, higher oil prices and a lack of fiscal discipline could pose risks to Indonesia's growth target.
Market participants were also watching the upcoming confirmation hearing for the next Bank Indonesia governor. Destry Damayanti is the government's sole nominee for the position.
"Market participants are awaiting the new Bank Indonesia governor's views on monetary policy, inflation control, rupiah exchange-rate stability and strategies to maintain foreign capital inflows," Nico said.
Middle East developments
In international markets, Asian stocks mostly gained on signs of progress in Middle East talks, easing concerns about potential disruptions to global energy supplies.
Pakistan said it had made significant progress in talks with Iran aimed at ending the war.
Iran and Oman also said they had discussed plans for a temporary transit corridor through the Strait of Hormuz, along with a project to clear mines from the waterway.
The developments helped push oil prices lower and ease concerns over disruptions in the Strait of Hormuz, Nico said, reducing some pressure on inflation.
Investors were also monitoring a meeting of China's National People's Congress Standing Committee, held from August 25 to 28. The session is being closely watched for potential policy support following weak economic data and repeated pledges by Chinese policymakers to boost growth.
All IDX sectors decline
The JCI opened higher but slipped into negative territory before the end of the first trading session and remained in the red through the close.
All 11 sectoral indexes tracked by the IDX-IC declined. The transportation and logistics sector posted the steepest drop, falling 4.04 percent, followed by energy and property, which fell 2.40 percent and 2.35 percent, respectively.
The stocks with the largest gains included TMPO, NICE, SAFE, BIKE and JAST. The biggest decliners were PADA, PSKT, TAMA, FUTR and PIA.
Trading volume reached 40.15 billion shares in 2.489 million transactions, with a total value of Rp18.06 trillion. A total of 136 stocks gained, 599 declined and 228 were unchanged.
Across Asia, Japan's Nikkei rose 0.61 percent to 66,258.00, Shanghai Composite gained 0.59 percent to 3,912.52, Hong Kong's Hang Seng advanced 0.56 percent to 25,652.97, South Korea's Kospi climbed 0.97 percent to 6,808.21, while Singapore's Straits Times Index slipped 0.24 percent to 5,721.88.
Source: https://en.tempo.co/read/2118347/jci-falls-1-48-as-investors-weigh-risks-ahead-of-august-27-protes