The Jakarta Composite Index today faced sharp volatility following U.S. President Donald Trump’s latest reciprocal tariff policy statement. Indonesian investors reacted quickly to external pressure, triggering market fluctuations and a weakening of the rupiah. While initial concerns ran high, analysts say the overall economic impact remains limited.
Jakarta Composite Index Today: Morning Market Reaction
At the opening bell, the Jakarta Composite Index (JCI) plunged 9% before partially recovering. The decline marked a strong reaction to Trump’s statement signaling possible tariff increases if he returns to office. Large-cap stocks in sectors like finance and consumer goods led the downturn.
As cited by Kompas.com, Equity analyst Wahyu Laksono noted that investors often respond emotionally to global political news. “Market panic was inevitable this morning, especially among retail investors,” he said. “However, we expect recovery to begin once sentiment stabilizes.”
Trading remained volatile throughout the day, although some investors began bargain-hunting as prices dropped.
Trump’s Trade Policy and Global Market Sentiment
Trump’s recent comments revived fears of a trade war, unsettling global markets. He suggested imposing more aggressive tariffs on Chinese goods, which many economists warn could escalate tensions and disrupt supply chains. Asian stock exchanges responded negatively, including those in Jakarta, Tokyo, and Seoul.
Despite the market reaction, Indonesia’s government officials took a calmer view. A Ministry of Finance representative stated, as reported by Bisnis.com, “The Trump tariff impact is moderate. Economic growth may decline only by 0.05%.” This estimate indicates that while investors remain cautious, the real economic effect may be manageable.
Meanwhile, global investors shifted their focus to safe-haven assets, leading to temporary capital outflows from emerging markets.
Rupiah Performance and Currency Pressure
Alongside the JCI decline, the Indonesian rupiah depreciated against the U.S. dollar. By midday, it had weakened to Rp16,200 per USD, its lowest level since the pandemic began. Bank Indonesia did not issue an immediate response, but market watchers suspect possible intervention if the trend continues.
Currency analyst Teguh Widodo explained the situation: “The rupiah’s depreciation was driven more by investor sentiment than fundamentals.” He emphasized that short-term currency pressure would ease as investors adapt to global developments.
Investor Outlook on Jakarta Composite Index Today
Looking ahead, analysts remain divided on the JCI’s short-term direction. The Jakarta Composite Index today may continue fluctuating until investors gain more clarity on U.S. economic policy.
Financial strategist Lanny Santoso said, “Market pressure is high, but domestic fundamentals remain strong. We still see upside potential in key sectors.” She also pointed out that valuations look attractive for long-term investors.
Most brokerages advise a wait-and-see approach while closely monitoring policy developments in the U.S. and China. Despite today’s turmoil, the market remains resilient, supported by steady earnings growth from major listed companies.
Monitoring Policy and Market Developments
While Trump’s trade comments rattled the Jakarta Composite Index today, the economic fundamentals behind Indonesia’s growth story remain intact. Analysts expect that market volatility will ease as global headlines settle.
Investors are urged to stay informed and avoid making hasty decisions based solely on political statements. With continued monitoring and sound strategies, the outlook for Indonesia’s capital markets stays cautiously optimistic.
Source: ekonomi.bisnis.com, kompas.com
Image: B-Universe Photo/Joanito De Saojoao
