Indonesian shares tumble again on economy, US Fed concerns

JAKARTA (Reuters) - Indonesian shares fell sharply again on Tuesday, to their lowest since March 2012, on continuing worry over the economy and the impact of a cut in U.S. monetary stimulus.

At 0420 GMT, the benchmark index was down 4.9 percent to 4103.4.

On Monday, the index dropped 5.6 percent, its biggest one-day fall in nearly two years.

Asian stocks opened lower on Tuesday, hit by continuing uncertainty over when the U.S. Federal Reserve will start to reduce its stimulus.

Minutes from the central bank's last policy meeting will be released on Wednesday, and might provide clues on when the Fed plans to taper its monthly $85 billion in asset purchases. Many analysts believe tapering could begin next month.

In Indonesia, the rupiah fell sharply on Monday, hitting its lowest levels in four years. Government bonds also slumped on concerns over the wide current-account deficit in the second quarter for Southeast Asia's biggest economy.

On Tuesday, Indonesian rupiah forwards hit a fresh four-year low on capital outflows. Spot rupiah indicative prices eased to 10,490 to the dollar,

Harry Su, head of research at Bahana Securities, said that with the share index dropping below 4,250 on Tuesday, "the market could head to the 3,800 according to our technical analyst."

Property stocks slid nearly 6 percent a day after the Indonesian finance minister said the government might raise the tax base for the booming property sector.

Trade and basic industry sectors also fell more than 6 percent while property shares slid 3.5 percent. State-controlled lender Bank Mandiri and Bank Rakyat Indonesia dropped more than 5 percent. Real estate developers Lippo Karawaci and Bumi Serpong Damai fell more than 8 percent.

Jakarta's blue chip index slid 5.5 percent.

(Reporting by Andjarsari Paramaditha; Editing by Jonathan Thatcher and Richard Borsuk)