The Indonesian stock market opened on a positive trajectory on Friday (March 7), marking a contrast to the broader decline seen in major Asian and global markets. The Jakarta Composite Index (IHSG) advanced by 31.97 points, or 0.48%, reaching 6,649.82 in early trade. The LQ45 Index, which represents 45 of Indonesia’s most prominent blue-chip stocks, also posted a modest gain, climbing 0.67 points, or 0.09%, to 754.16.
The resilience of the Indonesian market came despite a challenging global economic backdrop, with investors closely monitoring key macroeconomic developments. A major point of interest was the latest report from Bank Indonesia (BI) on the country’s foreign exchange reserves, which was expected to show continued stability. The Indonesian rupiah has maintained its position at approximately IDR 16,300 per U.S. dollar, reinforcing confidence in the central bank’s ability to manage currency fluctuations effectively.
Additionally, the Indonesian government’s fiscal strategy remained a focal point for market participants, particularly regarding its management of IDR 800 trillion in maturing debt scheduled for 2025. Investors reacted positively to signals that authorities were taking proactive steps to address financial obligations while maintaining economic stability.
Elsewhere in Asia, market sentiment was significantly weaker. Japan’s Nikkei 225 dropped sharply by 748.16 points, or 1.98%, to 37,037.31, driven by investor concerns over global economic conditions and the potential impact of U.S. trade policy shifts. In China, the Shanghai Composite Index fell 6.49 points, or 0.20%, to 3,310.44, as doubts lingered over the country’s post-pandemic recovery momentum. The Kuala Lumpur Composite Index in Malaysia also declined, falling 10.70 points, or 0.68%, to 1,560.69. Singapore’s Straits Times Index, however, showed resilience, gaining 10.70 points, or 0.27%, to reach 3,898.22.
Global markets were heavily influenced by recent trade policy developments in the United States. Former U.S. President Donald Trump made headlines after announcing that Canadian and Mexican imports under the USMCA would be granted a temporary exemption from the newly implemented 25% tariff. Initially, only Mexico was included in the exemption, but an amendment later extended the waiver to Canada as well. While the decision brought short-term relief to businesses, it also underscored the unpredictability of U.S. trade policies, prompting uncertainty among global investors.
Meanwhile, in Europe, stock markets saw mixed performances as investors responded to the European Central Bank’s (ECB) latest monetary policy decision. The ECB announced an interest rate cut in line with market expectations and signaled potential further easing if inflationary pressures remained subdued. This announcement helped European indices recover from earlier losses and end the trading session on a relatively stable footing.
On Wall Street, markets faced a sharp decline on Thursday (March 6), as major indices tumbled amid ongoing trade uncertainty and concerns over economic growth prospects. The Dow Jones Industrial Average dropped 427.51 points, or 0.99%, to 42,579.08, while the S&P 500 shed 104.11 points, or 1.78%, to 5,738.52. The Nasdaq Composite, heavily weighted with technology stocks, took the hardest hit, plunging 483.48 points, or 2.61%, to 18,069.26.
Amidst the volatility in global financial markets, Indonesia’s stock market continued to stand out as a relative safe haven, buoyed by strong economic fundamentals, stable fiscal policies, and investor confidence. As the global economic landscape remains fluid, Indonesia’s market resilience will likely continue to attract attention from both domestic and international investors seeking stability.
