Indonesia Stocks Slump 4.2% as Export-Control Speculation Hits Rupiah, Lifts Palm Oil 1.8%
Updated
Updated · Bloomberg · May 19
Indonesia Stocks Slump 4.2% as Export-Control Speculation Hits Rupiah, Lifts Palm Oil 1.8%
1 articles · Updated · Bloomberg · May 19
Jakarta’s benchmark index sank as much as 4.2%, extending its 2026 loss to more than 26% and making Indonesia the world’s worst-performing equity market this year.
The selloff accelerated on speculation the government may centralize commodity exports to curb capital outflows and support the rupiah, unnerving investors in energy and basic-materials shares.
The rupiah still fell 0.4% against the dollar to another record low, underscoring pressure on policymakers even as the rumored measures aimed to shore up the currency.
Palm oil futures in Malaysia reversed earlier losses and rose 1.8%, suggesting traders expect tighter export controls could constrain supply from one of the world’s key producers.
Can Indonesia's state-control gamble save its currency, or will it trigger a downgrade to a 'frontier market'?
Amid global fragmentation, is Indonesia's resource nationalism a blueprint for self-sufficiency or a path to economic isolation?