The Jakarta Stock Exchange Composite index fell 0.32% at the close of trade, citing weak economic data from Indonesia. The country's economic ties with the UK are likely to be impacted, as the UK is one of Indonesia's largest trading partners. The UK is Indonesia's third-largest export market, with bilateral trade valued at £14.3 billion in 2022, according to the UK Department for International Trade.
The decline in Indonesian shares is a cause for concern, as it may indicate a weakening of the country's economy. This could have a ripple effect on the global economy, including the UK. The UK's trade with Indonesia has grown steadily over the past few years, with exports to Indonesia valued at £6.4 billion in 2022, up from £4.5 billion in 2018. The UK's imports from Indonesia were valued at £7.9 billion in 2022, up from £6.2 billion in 2018.
UK businesses and investors with ties to Indonesia may need to reassess their operations and investments in light of the decline in Indonesian shares. This could lead to a reduction in trade and investment between the two countries, which could have a negative impact on the UK economy. The Bank of England has been closely monitoring the impact of global economic trends on the UK economy, including the decline in Indonesian shares.