Indonesia stocks fall due to economic outlook concerns

Indonesia's stock market experienced significant losses on Monday, reflecting growing concerns about the country's economic future. The Jakarta Composite Index dropped by as much as 4.7%, marking its largest daily decline in nearly a week. The healthcare sector was particularly hard-hit during this selloff. Analysts are attributing these declines to uncertainty about the government's economic policies under President Prabowo Subianto. Kok Hoong Wong, a trading executive, noted that many investors are feeling uneasy about the direction of these policies. The market turmoil coincided with the government's decision to transfer ownership of major state companies to a new sovereign wealth fund called Danantara. This includes well-known firms like PT Telkom Indonesia and PT Krakatau Steel. Investors are worried that these changes, combined with President Prabowo's expensive welfare programs, could strain the country's finances and hurt economic growth. Wong emphasized that the ongoing transition of state firms to the sovereign wealth fund is adding to market instability. Investors are also awaiting the announcement of a new management team for the fund, which has fueled further uncertainty. Just last week, on March 18, the benchmark index had plunged by 7.1% in a single day, marking the steepest decline since 2011. Trading was temporarily halted due to the sharp drop.