The Indonesian stock market opened on a positive note on Friday (March 7), bucking the downward trend that weighed on most major Asian markets. The Jakarta Composite Index (IHSG) climbed 31.97 points, or 0.48%, to reach 6,649.82, while the LQ45 Index, which tracks 45 of the most actively traded stocks in Indonesia, edged up by 0.67 points, or 0.09%, to 754.16. This upward movement came despite a backdrop of volatility and uncertainty in global financial markets.
Market analysts from Lotus Andalan Sekuritas pointed to domestic economic resilience as a key factor driving investor confidence in the Indonesian stock market. One of the most closely watched indicators was the foreign exchange reserve data scheduled for release by Bank Indonesia (BI) later in the day. Economists anticipated that reserves would remain stable, reinforcing confidence in the country’s ability to maintain macroeconomic stability. The rupiah has been trading around IDR 16,300 per U.S. dollar, reflecting the government’s ability to manage currency fluctuations effectively. Additionally, with IDR 800 trillion in government debt set to mature in 2025, policymakers have taken proactive measures to ensure financial stability, further reassuring investors.
Across the broader Asian region, stock markets faced significant headwinds. Japan’s Nikkei 225 suffered a steep drop of 748.16 points, or 1.98%, falling to 37,037.31 as concerns over U.S. trade policy and weak corporate earnings took a toll on sentiment. In China, the Shanghai Composite Index slipped 6.49 points, or 0.20%, to 3,310.44, as investors continued to grapple with uncertainty over the country’s economic recovery. Malaysia’s Kuala Lumpur Composite Index also declined by 10.70 points, or 0.68%, to 1,560.69. Singapore’s Straits Times Index, however, managed to gain 10.70 points, or 0.27%, reaching 3,898.22.
On the global stage, investors were closely monitoring trade developments between the United States, Canada, and Mexico. Former U.S. President Donald Trump announced that Canadian and Mexican goods under the USMCA would be exempt from newly imposed 25% tariffs for one month. Initially, the exemption applied only to Mexico, but Trump later signed an amendment extending it to Canada as well. While the decision provided temporary relief, it also highlighted the unpredictable nature of U.S. trade policy, leaving businesses and investors uncertain about future developments.
In Europe, stock markets exhibited resilience after the European Central Bank (ECB) announced a widely anticipated interest rate cut. The ECB also hinted at further policy measures to stimulate economic growth and maintain inflation at stable levels. Investors responded positively to the announcement, helping major European indices recover from early-session losses and close the day on a stable footing.
Meanwhile, Wall Street experienced a sharp downturn on Thursday (March 6), with major indices posting significant losses. The Nasdaq Composite officially entered a correction phase for the first time since December, driven by growing concerns over trade uncertainty and its potential impact on corporate profitability. The Dow Jones Industrial Average plummeted by 427.51 points, or 0.99%, to close at 42,579.08. The S&P 500 dropped by 104.11 points, or 1.78%, ending the session at 5,738.52, while the Nasdaq Composite plunged by 483.48 points, or 2.61%, to 18,069.26.
Despite the turbulence in global markets, Indonesia’s IHSG continued to show resilience, buoyed by strong economic fundamentals and investor confidence. As market participants navigate a complex landscape of shifting trade policies and economic uncertainty, Indonesia stands out as a market that remains attractive to both domestic and international investors.
