JCI Gains as Rupiah Slips After Trump Lowers Tariffs on Indonesian Goods
Jakarta. The Jakarta Composite Index (JCI) opened higher on Wednesday, while the rupiah weakened against the US dollar following US President Donald Trump’s announcement of reduced tariffs on Indonesian goods in exchange for wider US market access.
The JCI rose 42.17 points, or 0.59 percent, to 7,182.6 in the early trading session.
Meanwhile, the rupiah weakened by 0.08 percent to Rp 16,279 per dollar as of 9:12 a.m. Jakarta time, according to Bloomberg data. The US dollar index edged down 0.05 points to 98.57.
Trump announced he would cut proposed tariffs on Indonesian goods from 32 percent to 19 percent after Indonesia agreed to grant tariff-free access for US products. In return, Indonesia has committed to purchasing $15 billion worth of US energy products and $4.5 billion in American agricultural goods, along with 50 Boeing jets, including Boeing 777 wide-body aircraft.
Asian markets were mixed in early Wednesday trading, with Shanghai falling 0.24 percent, Nikkei down 0.09 percent, Kospi slipping 0.65 percent, while Hang Seng gained 0.1 percent and the Straits Times rose 0.25 percent.
On Wall Street, stocks mostly fell on Tuesday as inflation concerns weighed on hopes for lower interest rates. The S&P 500 dropped 0.4 percent, the Dow Jones Industrial Average fell by 436 points, or 1 percent, while the Nasdaq Composite rose 0.2 percent to a fresh record high, buoyed by gains in tech stocks, particularly Nvidia.
US inflation accelerated to 2.7 percent in June from 2.4 percent in May, driven by price increases in clothing, toys, and other imports, potentially reflecting the impact of Trump’s global tariff policies aimed at opening foreign markets to U.S. goods.
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