Environmental Clampdown Rattles Indonesia Markets

2026-01-21 06:43 By Farida Husna 1 min. read

Indonesian stocks fell 113 points, or 1.2%, to 9,011 in Wednesday afternoon deals, pulling back from a record high in the prior session as traders booked profits.

Market sentiment also weakened after President Prabowo revoked permits for 28 firms in forestry, palm oil, cocoa, power generation, and mining, citing environmental violations linked to last year’s floods in Sumatra.

Losses were broad-based, driven by property, financial, and infrastructure shares.

United Tractors slumped near 15% after its unit Agincourt, operator of the Martabe gold and silver mine, was among those affected.

Astra Intl.

dipped 11.3%, pressured by its stake in United Tractors, while Toba Pulp Lestari eased 0.8% as it sought clarification on the crackdown.

A modest rise in U.S.

futures helped cap further declines ahead of President Trump’s address at the World Economic Forum in Davos.

Investors now await Bank Indonesia’s policy decision, with rates widely expected to stay on hold for a fourth straight month.



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