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 spook

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.