The Jakarta Composite Index (JCI) in Indonesia experienced a significant plunge on Tuesday, plummeting as much as 7.1% in one of its most severe intraday drops since 2011. This sharp decline prompted a 30-minute suspension of trading when losses surpassed the 5% threshold.
The Indonesian rupiah weakened by 0.3%, cementing its position as Asia’s worst-performing currency this year, facing mounting concerns over economic performance, forced asset liquidations, and a wave of investor withdrawals. Foreign investors have extracted approximately $1.65 billion from local equities in 2025 alone.
With a key rate decision from Bank Indonesia anticipated tomorrow, market participants are keenly watching for possible intervention aimed at stabilizing the markets.
Krungsri Securities (KSS) strategist comments reflect that the massive sell-off in the Indonesian stock market is exerting limited impact on the Thai market’s SET Index. However, it may impose a brief negative sentiment on Thai companies with considerable revenues from Indonesia, including SCGP (-4.29%), SCC (-3.83%), PTTGC (-4.28%), BBL (+1.38%), and KBANK (+2.30%).
Key Facts from Indonesia’s Stock Market Decline:
On the day of the downturn, the JCI saw a 6.12% drop, halting trading temporarily. The hardest-hit sectors included Technology, which plunged 11.7%, Basic Materials down 7.3%, and Energy falling 4.5%. The Financial sector also saw a decline of 2.7%.
Several factors contributed to this downfall:
- Economic fears, particularly following reports of default by major construction firm PT Wijaya Karya, the second largest in Indonesia, on a $61 million loan and a 2022-issued Mudaraba Sukuk bond.
- Businesses in Indonesia are facing threats from crime syndicates posing as civic organizations, adversely affecting the investment climate.
- Consumer spending has slowed ahead of the Eid Holiday, a significant Muslim festival period.
Impact Analysis on the Thai Market:
The immediate impact on Thai stocks is expected to be limited, considered only a short-term negative sentiment. It is advisable to delay investments with exposure to Indonesia, including:
- SCGP: 14% of total revenue derived from Indonesia
- SCC: 7% of total revenue
- PTTGC: 3% of total revenue
- BBL: 12% of total loans linked to Indonesia
- KBANK: Less than 5% of total loans linked to Indonesia
