Indonesian stocks extended their decline, hitting the lowest level since August 14. The weakening rupiah dampened market risk appetite, causing the country's equities to underperform other regional markets.

The Jakarta Composite Index fell as much as 1.7%, with energy and basic materials sectors leading the losses. The rupiah depreciated for a second consecutive day, driven by rising dollar demand from import settlement.

According to Wilbert Arifin, an analyst at Mirae Asset Sekuritas Indonesia, external pressures on the rupiah, including persistently high global interest rates following the Federal Reserve's rate hikes, are dragging down the stock market. The lack of domestic positive catalysts has further intensified the market's downward pressure.