Indonesian Markets Slump on Commodity Export Control Speculation

Indonesian markets fell as speculation mounted that the government will centralize commodity exports to control capital flows and shore up a plunging currency. Palm oil futures rose.

The benchmark Jakarta Composite Index fell as much as 4.2% — taking its year-to-date loss to more than 26% as the world’s worst equity performer — with energy and basic material stocks leading the decline. The currency slid 0.4% against the dollar to another record low while palm oil futures in Malaysia reversed earlier losses to climb 1.8%.