Jakarta. Jakarta’s benchmark stock index surged on Tuesday as investors welcomed the appointment of new executives at Indonesia’s state-owned investment holding company, Daya Anagata Nusantara (Danantara). The Jakarta Composite Index (JCI) climbed 74.4 points, or 1.21 percent, to close at 6,235, with financial stocks leading the gains.

The financial sector rose 2.93 percent, followed by healthcare, which gained 2.11 percent. Basic materials and transportation added 1.16 percent and 1.06 percent, respectively. Technology stocks, however, dipped 0.4 percent to 7,355.

“The market responded positively to the appointment of Danantara’s board and advisory panel,” said Trioksa Siahaan, Senior Vice President at the Indonesian Banking Development Institute (LPPI). “This move is expected to enhance governance and ensure more measured investment policies.”

Former Thai Prime Minister Thaksin Shinawatra and renowned US investor Ray Dalio have been appointed to the sovereign wealth fund's advisory council. Other prominent names on the advisory board include Columbia University economist Jeffrey Sachs and top equity portfolio manager F. Chapman Taylor.

Global Sentiment Lifts Market

Beyond domestic factors, external developments also lifted market sentiment. Indonesian equities tracked gains on Wall Street, fueled by expectations of lower US tariffs. The US dollar, however, strengthened to a three-week high after positive economic data.

The S&P Global US PMI rose to 53.5 in March from a 10-month low of 51.6 in February, marking the strongest growth since December 2024. “This signals an economic recovery after a sluggish first quarter,” Pilarmas Sekuritas said in a research note.

Investors also weighed comments from former US President Donald Trump, who reiterated on Monday that automotive tariffs were imminent. However, some levies may be softened or postponed beyond the initial April 2 deadline.

In contrast, Chinese and Hong Kong stocks remained under pressure due to broad profit-taking and skepticism over Beijing’s latest stimulus measures. Fiscal revenue in China fell 1.6 percent in January-February, underscoring economic challenges despite a 5 percent GDP growth target and record-high deficit projections.

Rupiah Faces Pressure

Meanwhile, Indonesia’s rupiah touched its lowest level since the 1998 financial crisis. To stabilize the currency, Bank Indonesia deployed an aggressive ‘triple intervention’ strategy, aiming to balance supply and demand.

“The rupiah’s decline was driven by hawkish signals from the Federal Reserve’s Atlanta governor, who now sees only one rate cut this year,” Pilarmas noted.

The rupiah closed 44 points (0.45 percent) lower on Tuesday at Rp 16,611.5 per USdollar. The dollar index edged up 0.12 points to 104.3. On Monday, the rupiah had weakened by 66 points (0.4 percent) to 16,568 per dollar.

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