Jakarta. Indonesia’s benchmark stock index opened slightly higher on Wednesday as investors monitored ongoing trade negotiations with the United States and remained cautious amid mixed global market sentiment.

The Jakarta Composite Index (JCI) rose 0.14 percent to 6,450 in early trading, with 221 stocks advancing, 122 declining, and 219 unchanged.

The modest gain comes as Coordinating Minister for Economic Affairs Airlangga Hartarto and his delegation continue talks with US officials over a proposed 32 percent tariff on Indonesian exports.

Valdy Kurniawan, an analyst at Phintraco Sekuritas, said traders remain wary of the US's unpredictable trade stance. “Before the long holiday, markets received signals of a more flexible US policy. However, recent developments show a more aggressive approach targeting nearly all of America’s trading partners,” he said.

Airlangga said the Indonesian government has laid out several strategies to “revitalize” bilateral economic relations, including the potential for a limited free trade agreement. A bilateral Trade and Investment Framework Agreement (TIFA) is also under consideration, he added.

“Indonesia has made it clear that these meetings must result in something concrete. It’s crucial that we achieve specific outcomes,” Airlangga said during a press briefing at the Presidential Palace on Monday.

Meanwhile, China’s economy grew 5.4 percent year-on-year in the first quarter, supported by a surge in exports ahead of sweeping tariff hikes imposed by the US. However, analysts warn that growth could slow significantly in the coming months as tariffs of up to 145 percent take effect. China is Indonesia's largest trading partner.

Domestically, concerns over weakening consumer demand continue to weigh on sentiment. Indonesia’s consumer confidence index dropped to 121.1 in March from 126.4 in February, according to official data.

The rupiah also opened slightly weaker on Wednesday as markets awaited further developments in the trade talks and upcoming economic data releases. Bloomberg data at 9:05 a.m. local time showed the rupiah slipping 0.03 percent to 16,831 per US dollar. The currency closed at 16,826.5 on Tuesday, down 0.24 percent from the previous session.

In commodities, gold prices surged to a new record high. State-owned miner Aneka Tambang (Antam) raised its benchmark gold price by Rp 20,000 to Rp 1,916,000 per gram, breaking the previous record of Rp 1,904,000 set on April 12.

Add as a preferred source on Google +