Jakarta. The Jakarta Composite Index (JCI) opened lower on Wednesday, slipping 2.19 points, or 0.04 percent, to 6,221.1 in early trade, fluctuating between 6,187 and 6,227. The decline follows Tuesday’s sharp selloff, which saw the index plunge 3.84 percent to 6,223.39 and trigger a rare trading halt after hitting an intraday low of 6,011.84—its first suspension since the Covid-19 pandemic.

A broad-based selloff in conglomerate stocks, combined with expectations of a possible rate cut by Bank Indonesia in Wednesday's policy meeting, contributed to the steep correction, NH Korindo Sekuritas Indonesia wrote in a note. “We expect JCI to remain volatile while testing key psychological support at 6,000,” it stated.

Bank Indonesia (BI) is expected to keep its benchmark interest rate at 5.75 percent during its Board of Governors meeting on March 18–19, according to the Institute for Economic and Social Research at the Faculty of Economics and Business, University of Indonesia (LPEM FEB UI).

Teuku Riefky, an economist at LPEM FEB UI, said that while inflation remains under control, temporary price pressures from Ramadan and Eid festivities could impact future price levels.

“We believe BI should prioritize exchange rate stability and financial market resilience by keeping the benchmark rate at 5.75 percent in its March policy meeting,” Riefky wrote in the institute’s macroeconomic analysis report.

Meanwhile, the Federal Reserve is set to announce its policy decision in tandem with BI. Markets anticipate the Fed will keep interest rates unchanged at 4.25–4.50 percent at the upcoming Federal Open Market Committee (FOMC) meeting.

“A rate cut by BI could add pressure on the rupiah,” Riefky warned.

Despite the bearish sentiment, Reliance Sekuritas projects a potential technical rebound, with the index trading between support at 6,180 and resistance at 6,270. Investors are closely watching monetary policy decisions from both Bank Indonesia and the US Federal Reserve.

“The deep correction yesterday could pave the way for a short-term rebound,” Reliance Sekuritas said in its Wednesday report.

Rupiah Under Pressure, Gold Surged Past $3,000

The rupiah weakened 0.3 percent against the dollar, making it the worst-performing currency in Asia this year. Meanwhile, the greenback briefly hit a two-week high against the yen before stabilizing at 149.165 ahead of the Bank of Japan’s policy decision.

Gold prices surged past $3,000 per ounce for the first time, as investors sought safety amid escalating geopolitical risks and uncertainty over US trade policy. Spot gold hit an early session high of $3,028.24 before rising 1.2 percent to $3,037.38, while US gold futures climbed 1.3 percent to $3,043.40.

The rally came as Israeli airstrikes pounded Gaza, killing 326 people and ending a two-month ceasefire with Hamas, according to Palestinian health authorities.

Brent crude fell 0.72 percent to $70.56 per barrel, while West Texas Intermediate (WTI) dropped 1.01 percent to $66.90. Oil markets reacted to discussions between US President Donald Trump and Russian President Vladimir Putin, which signaled a potential easing of sanctions on Russian energy exports amid ongoing efforts to resolve the war in Ukraine.

Meanwhile, Trump has pressed forward with trade measures, including a flat 25 percent tariff on steel and aluminum that took effect in February, alongside proposed sectoral tariffs set to be implemented on April 2.

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