Jakarta. Jakarta Composite Index kicked off Thursday on a strong note, opening at 8,764 and climbing 64 points, or 0.73 percent, as investors responded to a global risk-on mood after the US Federal Reserve delivered its widely expected rate cut.

The benchmark moved within the 8,731–8,772 range in early trade.

Trading was active in the first five minutes, with 4 billion shares changing hands and turnover reaching Rp 2.21 trillion ($132.77 million) across more than 228,000 transactions. Market breadth showed 276 gainers, 202 decliners, and 185 flat.

Pilarmas Investindo Sekuritas said sentiment today is lifted by the Fed’s decision to trim rates from 3.75–4 percent to 3.5–3.75 percent. Fed Chair Jerome Powell emphasized keeping policy “sufficiently tight” to guide inflation back to 2 percent, while ruling out further hikes. The dot plot signals one cut in 2026 and another in 2027, though divisions persist: Goolsbee and Schmid dissented in favor of holding, while Trump nominee Stephen Miran pushed for a deeper 50 bps reduction. The Fed also upgraded its 2025 GDP growth outlook to 2.3 percent and lowered expected inflation to 2.4 percent. Powell’s term concludes in May, with Trump expected to name a successor next year, a potential positive catalyst, Pilarmas said, though bound by institutional checks.

Onshore sentiment, however, is clouded by Financial Times reporting that the Indonesia–US trade deal may be at risk after Washington accused Jakarta of wavering on commitments, especially on non-tariff barriers and digital trade rules. Indonesia’s request for renegotiation has raised concerns the agreement could unravel, echoing earlier tensions over a rejected “poison pill” clause. This comes despite Trump touting a major deal with Indonesia in July covering energy, agriculture, and Boeing aircraft purchases. The Indonesian government insists talks remain normal, but Pilarmas warns that a collapse could weigh on the economic outlook as other Asian economies secure fresh US agreements.

Overnight, Wall Street rallied to the brink of record territory following the Fed’s move. The S&P 500 rose 0.7 percent, the Dow Jones jumped 497 points, and the Nasdaq added 0.3 percent. Investors welcomed Powell’s more measured tone on future cuts, as well as the Fed’s new plan to buy shorter-term Treasurys to support liquidity.

Asian markets opened mostly higher this morning: Japan’s Nikkei climbed 216 points to 50,818, South Korea’s Kospi added 28 points to 4,163, Hong Kong’s Hang Seng advanced 170 points to 25,710, and Shanghai’s SSE inched up 3 points to 3,903.

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