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Indonesian Rupiah Hits Record Low; Jakarta Composite Index Down 26% YTD, Underperforms on Concerns Over Centralized Commodity Export Control
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Indonesia's Jakarta Composite Index (IDX) has fallen for six consecutive trading days. After resuming trade with a 1.8% decline following a holiday in the previous session, the index continued to slide today (19th), dropping as much as 4.2% intraday. It was last reported at 6,361 points, down 238 points or 3.6%, marking a fresh low in more than a year. The index has slumped more than 26% year to date, making it the worst-performing equity market globally. The Indonesian rupiah earlier weakened to 17,743 per USD, a record low, and was last down 0.2% at 17,706 per USD. Indonesian markets declined amid speculation that the government may centralize control over commodity exports to manage capital flows and support the sharply weakening rupiah. Palm oil futures prices, however, rose. According to a Bloomberg report, traders attributed the latest sell-off in the IDX to speculation that the government plans to establish a special agency responsible for overseeing exports of strategic commodities such as coal, crude palm oil and minerals. Such a move could heighten concerns over increased state control of key industries, though it may also help the government boost fiscal revenue. Commodities account for a substantial share of Indonesia's economy, intensifying market concerns. Indonesia is a major global exporter and the world's largest producer of palm oil. Any change in export flows could therefore affect currency stability and foreign exchange reserves. Representatives from sovereign wealth fund Danantara Indonesia, the Ministry of Trade and the Ministry of Finance did not respond to the report. (da/u) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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