Indonesia Markets Hit As Deadly Protests Drive Jakarta Index And Rupiah Lower

Indonesia’s markets fell for a second day as protests over inequality and rising costs turned deadly, pushing the rupiah toward multimonth lows, according to The Wall Street Journal. The Jakarta Composite Index dropped as much as 3.6% before ending 1.2% lower, extending a 3% slide since last week’s record close. President Prabowo Subianto, under pressure less than a year into office, scrapped controversial parliamentary perks to ease public anger and canceled a planned China trip. S&P said protests are unlikely to destabilize politics, while Citi warned growth and fiscal risks have risen. The rupiah weakened to 16,410 against the dollar after nearing May lows, though some economists expect stabilization if unrest subsides. Bank Indonesia pledged ongoing interventions to support the currency as JPMorgan, OCBC, and MUFG flagged potential headwinds from skittish sentiment and capital outflows.