Indonesia’s benchmark Jakarta Composite Index plunged as much as 5.2% on
Wednesday to its lowest since May 2021; the materials sector led, falling more
than 10%. The rupiah dropped 0.5% versus the dollar, the weakest Asian currency,
while Brent crude rose for a third day. The sell-off reflects investor concern
that higher oil will exacerbate fiscal and external balance pressures, plus fear
of government intervention in commodities and the risk of an adverse MSCI
reclassification, which has spooked global funds. The JCI is down about 32%
year-to-date, the weakest among more than 90 global equity indices tracked by
Bloomberg. MNC Sekuritas analyst Wikasana said the index remains in a broader
downtrend with no sign of an effective reversal.
