The Indonesian stock market opened the trading session on Friday (March 7) with a strong performance, bucking the broader trend of weakness seen across major Asian indices. The Jakarta Composite Index (IHSG) recorded an increase of 31.97 points, or 0.48%, reaching 6,649.82 in early trade. Meanwhile, the LQ45 Index, which tracks the performance of 45 of Indonesia’s most liquid and fundamentally strong stocks, edged up 0.67 points, or 0.09%, to 754.16.
Despite prevailing global economic uncertainties, analysts from Lotus Andalan Sekuritas projected that the IHSG would continue to trade with an upward bias, supported by strong domestic fundamentals and investor confidence. A key focus for market participants was the scheduled release of Indonesia’s foreign exchange reserves data by Bank Indonesia (BI). The central bank’s report was anticipated to reflect stable reserve levels, reinforcing confidence in the nation’s macroeconomic stability. The Indonesian rupiah has remained relatively steady, hovering around IDR 16,300 per U.S. dollar, a reflection of the government’s ability to maintain economic balance amid fluctuating global conditions.
Investors also kept a close eye on Indonesia’s fiscal management, particularly regarding the government’s strategy for handling its IDR 800 trillion debt maturity scheduled for 2025. The administration’s proactive approach in managing its obligations has provided reassurance to market participants, helping to sustain a positive sentiment within the domestic financial markets.
While Indonesia’s stock market exhibited resilience, the broader Asian region faced a challenging trading session. Japan’s Nikkei 225 suffered a sharp decline of 748.16 points, or 1.98%, closing at 37,037.31, as concerns over U.S. trade policies and global economic growth weighed heavily on investor sentiment. China’s Shanghai Composite Index slipped 6.49 points, or 0.20%, to 3,310.44, reflecting continued concerns over the pace of the country’s economic recovery. Malaysia’s Kuala Lumpur Composite Index also struggled, falling 10.70 points, or 0.68%, to 1,560.69. Singapore’s Straits Times Index, however, was an exception, rising 10.70 points, or 0.27%, to 3,898.22.
Beyond Asia, global markets faced heightened volatility amid shifting trade policies and monetary policy decisions. Investors remained focused on recent developments in the United States, where former President Donald Trump made a surprise policy shift regarding trade tariffs. Earlier in the week, the U.S. government imposed a 25% tariff on imports from Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA). However, Trump later announced a temporary one-month exemption for Canadian and Mexican goods, initially granting the relief solely to Mexico before extending it to Canada. While the decision temporarily alleviated trade tensions, it also highlighted the unpredictability of U.S. trade policies, keeping global investors on edge.
In Europe, stock markets managed to recover from early losses and closed the previous session on a stable note, following a widely expected interest rate cut by the European Central Bank (ECB). The ECB also signaled a willingness to implement further monetary easing measures if necessary, aiming to stabilize inflation and support economic growth across the Eurozone. This reassurance helped European markets pare back losses and stabilize after an uncertain trading day.
Meanwhile, Wall Street faced a steep sell-off on Thursday (March 6), with the Nasdaq Composite Index officially entering a correction phase for the first time since December. Concerns over global trade policies and economic uncertainty continued to weigh on investor sentiment. The Dow Jones Industrial Average plunged by 427.51 points, or 0.99%, to 42,579.08. The S&P 500 fell by 104.11 points, or 1.78%, to 5,738.52, while the Nasdaq Composite recorded the most significant decline, plummeting 483.48 points, or 2.61%, to 18,069.26.
Despite the turbulence seen in major financial centers across the globe, the Indonesian stock market stood out as one of the few bright spots, supported by strong domestic fundamentals and a positive economic outlook. As global investors continue to assess the evolving landscape of trade policies and monetary interventions, Indonesia’s stability remains a key driver of its market performance.
