The Indonesian Stock Exchange (IDX) saw an encouraging start to trading on Friday (March 7), with the Jakarta Composite Index (IHSG) opening higher despite the widespread downturn across major Asian markets. The IHSG rose by 31.97 points, or 0.48%, reaching 6,649.82, while the LQ45 Index, which tracks 45 blue-chip stocks, inched up 0.67 points or 0.09% to settle at 754.16.
Market analysts from Lotus Andalan Sekuritas projected that the IHSG could sustain its upward momentum throughout the trading session, citing optimistic domestic sentiment and steady macroeconomic indicators. Investors are closely monitoring key economic data, particularly the latest foreign exchange reserve figures set to be released by Bank Indonesia (BI) today. These reserves are expected to remain stable amid a relatively steady rupiah exchange rate, which hovers around IDR 16,300 per US dollar. Meanwhile, the Indonesian government is also taking proactive measures to manage its maturing debt obligations, with an estimated IDR 800 trillion in bonds coming due in 2025.
While the Indonesian market displayed resilience, the broader Asian region experienced a downturn, with major indexes showing significant declines. Japan’s Nikkei 225 dropped sharply by 748.16 points or 1.98% to 37,037.31, reflecting concerns over global trade uncertainty and mixed economic data. China’s Shanghai Composite Index also slipped 6.49 points or 0.20% to 3,310.44, while Malaysia’s Kuala Lumpur Composite Index weakened by 10.70 points or 0.68% to 1,560.69. However, Singapore’s Straits Times Index bucked the trend, posting a modest gain of 10.70 points or 0.27% to 3,898.22.
On the international front, global markets have been navigating heightened volatility driven by geopolitical tensions and policy shifts. Investors worldwide were particularly focused on recent trade developments involving the United States, Canada, and Mexico. In a surprising turn of events, former U.S. President Donald Trump announced a temporary exemption from the recently imposed 25% tariffs on Canadian and Mexican goods under the United States-Mexico-Canada Agreement (USMCA). Initially, only Mexico was granted this exemption, but Trump later signed an amendment extending it to Canada as well. This move aimed to ease trade relations but also introduced uncertainty regarding the long-term trajectory of U.S. trade policies.
In Europe, stock markets managed to pare early losses and closed relatively flat on Thursday (March 6), following a widely expected rate cut by the European Central Bank (ECB). The ECB signaled a willingness to implement further monetary easing measures if necessary, aiming to stabilize inflation and support economic growth across the Eurozone.
Meanwhile, Wall Street faced a sharp sell-off on Thursday (March 6), with the Nasdaq Composite officially entering a correction phase for the first time since December. The sell-off was driven by persistent concerns over trade policy uncertainty and its potential impact on corporate earnings. The Dow Jones Industrial Average tumbled 427.51 points, or 0.99%, closing at 42,579.08. The S&P 500 fell 104.11 points, or 1.78%, to settle at 5,738.52, while the tech-heavy Nasdaq Composite suffered the steepest decline, plunging 483.48 points, or 2.61%, to 18,069.26.
As global markets remain in flux, investors will continue monitoring economic indicators and policy shifts that could shape market movements in the coming days. Despite the broader regional downturn, Indonesia’s IHSG has demonstrated strength, reflecting investor confidence in the country’s economic fundamentals and policy stability.
