After 540% Surge, New Indonesia Tech Index Is Losing Luster Fast

  • The IDX Sector Technology gauge is down 27% from August peak
  • Firms need to prove ability to generate profit: Panin Asset
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Investors cautious over lofty valuations in Indonesia’s booming technology market have sent a gauge of the shares tumbling over the past two months.

The IDX Sector Technology index has fallen 27% from its August peak after surging 540% since inception in January. Investors have sold shares of data center provider DCI Indonesia, media company Elang Mahkota Teknologi and Bukalapak.com PT, which make up a combined 76% weighting of the gauge.