Jakarta. Indonesia’s benchmark stock index, the Jakarta Composite Index (JCI), tumbled 214.85 points, or 3.31 percent, to close the week at 6,270.60 on Friday, as investors reacted to escalating global trade tensions and domestic economic uncertainty. The LQ45 Index, which tracks the 45 most liquid stocks, also fell sharply, losing 27.76 points, or 3.80%, to 703.63.

Jakarta. In response to the market downturn, the Indonesia Stock Exchange (IDX) has prepared several measures to stabilize the market. IDX President Director Iman Rachman said the exchange is coordinating with the Financial Services Authority (OJK) and plans to meet with market participants.

“We are not standing still. On Monday, we will convene market players to discuss potential actions. As a self-regulatory organization (SRO), IDX plays a crucial role in the ecosystem and will engage stakeholders to find the best solutions,” Iman stated at the IDX building on Friday.

One option under consideration is a policy adjustment on short-selling. The exchange will gather input from market participants on how this measure could impact index movements.

Iman also emphasized the importance of maintaining investor confidence, particularly from foreign investors.

“We must protect investor trust, especially from foreign players, to prevent further capital outflows,” he added. 

Regional markets were also under pressure following US President Donald Trump’s announcement that tariffs on Mexico and Canada would remain in place next week, while China faces an additional 10 percent tariff hike. Analysts said the ongoing trade war could significantly impact China’s economy, which relies heavily on exports and free trade, raising broader concerns about a potential global economic slowdown.

Domestically, investors are monitoring the performance of the newly minted sovereign wealth fund, Danantara, amid expectations that it will implement strong corporate governance principles. Danantara may step in as a standby buyer for state-owned enterprises (SOEs) looking to strengthen their capital amid weak investor sentiment, Chief Investment Officer Pandu Sjahrir said Thursday. The fund is assessing opportunities to support publicly listed SOEs with solid returns but declining stock prices over the past four months. 

Market participants are also digesting MSCI’s downgrade of Indonesia’s equity market rating from equal-weight to underweight, further pressuring local stocks.

Additionally, concerns over state-owned banks’ participation in the government’s affordable housing program have weighed on investor sentiment. Market players are wary of potential risks related to asset quality, loan tenures, and borrower profiles, which could affect the performance of state lenders.

All ten sectors on the IDX declined, led by the basic materials sector, which dropped 5.82 percent, followed by the energy and infrastructure sectors, which fell 3.53 percent and 3.21 percent, respectively. Trading volume reached 18.51 billion shares, with a total transaction value of Rp 12.98 trillion. Declining stocks outnumbered gainers 435 to 209, while 311 stocks remained unchanged.

Across the region, the Nikkei 225 gained 1,100.67 points, or 2.88 percent, to 37,155.50, while the Shanghai Composite dropped 67.16 points, or 1.98 percent, to 3,320.90. Malaysia’s KLCI declined 11.90 points, or 0.75 percent, to 1,574.70, while Singapore’s Straits Times Index climbed 24.35 points, or 0.62 percent, to 3,896.84.

Meanwhile, in the US, the S&P 500 has slid 2.5 percent week-to-date, with the Dow Jones Industrial Average falling nearly 3 percent in February. Investors remain on edge over the Federal Reserve’s interest rate policy, with rate-cut expectations becoming increasingly uncertain amid mixed economic signals.

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