Jakarta. Indonesian stocks extended their losing streak on Wednesday, sinking as much as 1.49% as the Jakarta Composite Index (JCI) fell further below the psychologically important 4,900 level.

Jakarta Composite Index (JCI) initially dropped 0.97% to 4,856 before extending its losses to 1.49%. The index moved between 4,824 and 4,885 during early trading.

According to RTI data, around 1.58 billion shares had changed hands in the opening minutes, with a total transaction value of Rp 456.19 billion ($25.18 million) and 59,820 transactions. A total of 73 stocks advanced, 420 declined and 117 remained unchanged.

The decline followed a broad-based sell-off on Tuesday, when all sectors closed lower. The basic materials sector recorded the steepest drop, falling 6%, mainly dragged down by corrections in nickel- and gold-related stocks.

Phintraco Sekuritas attributed the weakness to plans to limit domestic nickel production to support prices, alongside a correction in gold prices.

“Technically, the JCI could test the 4,650–4,750 range today if the 4,900 support level fails to contain further losses,” Phintraco Sekuritas wrote in its Wednesday research note.

The brokerage also pointed to a more cautious domestic economic outlook after the Financial System Stability Committee (KSSK) lowered its 2026 economic growth forecast to 5.4%–5.5%, from its previous projection of 5.6%–6.0%, reflecting mounting external pressures on the domestic economy.

“The revision could limit investor optimism over corporate earnings prospects, particularly in sectors sensitive to purchasing power and economic activity, such as consumer goods, retail and property,” Phintraco Sekuritas said.

Meanwhile, the brokerage highlighted the finance minister's clarification that the government would not introduce any new tax collection scheme on Nov. 9, 2026, including the reported plans to impose digital tax collections through banks, fintech companies and e-commerce platforms.

“The clarification is expected to ease concerns among businesses and the public over potential increases in digital transaction costs,” Phintraco Sekuritas said.

The government is also drafting changes to its foreign exchange proceeds from natural resources (DHE SDA) regulations to encourage exporters to convert a larger share of their US dollar earnings into rupiah.

“The policy is expected to strengthen liquidity and improve the resilience of the domestic financial market, although its impact on exporters' liquidity flexibility needs to be monitored,” the brokerage added.

On the global front, Kiwoom Sekuritas Indonesia said market sentiment remained mixed ahead of the US midterm elections.

Prediction markets put the probability of Democrats taking control of the Senate at around 74%, while their chances of winning the House of Representatives were also considered relatively high.

“Investors anticipate potential short-term volatility as the election results could affect the direction of US fiscal policy and government spending,” Kiwoom said.

On the economic front, a stronger-than-expected Job Openings and Labor Turnover Survey (JOLTS) report highlighted the resilience of the US labor market. Investors are now turning their attention to the US employment report due at the end of this week, as well as Advanced Micro Devices' (AMD) earnings, which could offer insights into the outlook for the semiconductor and artificial intelligence industries.

Wall Street ended Tuesday's session mixed. The S&P 500 rose 0.4%, while the Nasdaq Composite gained 0.8%. The Dow Jones Industrial Average, however, fell 197 points.

“The gains were mainly driven by a rebound in semiconductor stocks after coming under pressure in the previous session,” Kiwoom said.

Asian markets also traded lower on Wednesday. As of 9:39 a.m. Jakarta time, Japan's Nikkei 225 had plunged 3.54%, while South Korea's Kospi fell 1.67%. Hong Kong's Hang Seng slipped 0.48%, and the Shanghai Composite Index declined 0.53%.

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