Overseas Indonesia Stock Selling Most Since May 2005

Indonesian stocks are posting Southeast Asia’s biggest declines as concern the central bank has moved slower than peers in curbing inflation prompts the biggest month of selling by overseas investors since 2005.

The Jakarta Composite Index has fallen 5.5 percent since the start of the year, compared with the MSCI Asia Pacific Index’s 1.1 percent advance, led by a drop in PT Astra International and PT Bank Central Asia. The Jakarta gauge, which rose to a record on Dec. 9, may slump 8.6 percent to 3,200 in coming weeks, according to PT Bahana TCW Investment Management, PT Mandiri Manajemen Investasi and PT Manulife Asset Management, which manage a combined $6.7 billion in Jakarta.