Indonesia Stocks Drop Most in Four Months as Elections Scrapped

Indonesian stocks dropped, dragging the benchmark index by the most in almost four months, after the nation’s parliament passed a law scrapping direct local elections. The rupiah weakened and bonds fell.

The Jakarta Composite Index slid 1.3 percent to close at 5,132.563, the steepest decline since May 30. PT Bank Mandiri sank 4.5 percent and PT Bank Rakyat Indonesia tumbled 3.9 percent. The local currency depreciated 0.3 percent to 12,023 per dollar, while the yield on the government’s 10-year bonds climbed six basis points to 8.22 percent, prices from the Inter Dealer Market Association show.