The Jakarta Composite index sank 1.7 percent to 3,912.39, the most since Jan. 30. The gauge declined 2.6 this week, the biggest drop since the week ended Nov. 25.
Mining companies: PT Bumi Resources Minerals (BRMS) , which owns shares in a copper producer, fell 1.7 percent to 580 rupiah and PT Aneka Tambang (ANTM) , a gold and nickel producer, lost 2.6 percent to 1,860 rupiah. Indonesia will ban exports of raw metals, including copper and nickel, starting in 2014, according to a decree signed by the nation’s energy ministry on Feb. 6 and posted on its website yesterday.
PT Astra International (ASII) , Indonesia’s largest automotive retailer, dropped 2.4 percent to 71,200 rupiah, the lowest close since Dec. 16. Overseas investors are selling stocks that have rallied last month such as Astra to raise cash amid uncertainties related to the European debt crisis, said Armand Dharmasana, head of research at PT Phillip Securities in Jakarta. Astra rose 6.6 percent last month.
PT Bumi Resources (BUMI) , Indonesia’s biggest coal producer, fell 3 percent to 2,400 rupiah, the lowest close since Jan. 9. Bumi Plc (BUMI)’s two largest shareholders said they are “absolutely confident” that investors will support a proposal to replace the directors of the company, including billionaire founder Nathaniel Rothschild. Bumi Plc owns 29.2 percent of Bumi Resources.
Investors had expected Rothschild’s presence would help improve corporate governance at Bumi Resources, Frederick Daniel Tanggela, an analyst at PT Bahana Securities in Jakarta, said. Bumi Resources Director Dileep Srivastava didn’t answer a call to his mobile phone and hasn’t replied to an e-mail.
To contact the reporter on this story: Berni Moestafa in Jakarta at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com