Jakarta. Indonesia’s benchmark stock index opened higher on Tuesday, extending its record run despite rising global geopolitical and trade tensions.

Jakarta Composite Index (JCI) climbed 23 points, or 0.25%, to 9,156 in early trading, marking another all-time high. The index moved within a 9,126–9,169 range shortly after the opening bell.

RTI data showed that in the first five minutes of trading, volume reached 5.46 billion shares with a turnover of Rp 2.40 trillion ($141.40 million), recorded across more than 324,000 transactions. Gainers slightly outnumbered decliners, with 256 stocks up, 250 down, and 177 unchanged.

According to Pilarmas Investindo Sekuritas, markets are navigating escalating global trade frictions as the United States moves toward imposing new tariffs on the European Union. Washington plans to levy a 10% import tax starting Feb. 1, with the possibility of raising it to 25% by June should negotiations fail. Germany, Sweden, and Denmark are seen as the most exposed.

The European Union has signaled potential retaliation, preparing tariffs worth €93 billion ($108 billion). European inflation, however, remains contained, with monthly CPI unchanged at 0.2%, annual CPI easing to 1.9% from 2%, and core CPI steady at 2.3%.

In China, economic momentum softened. Annual GDP growth slowed to 4.5% from 4.8%, while year-to-date growth eased to 5% from 5.2%. Pilarmas noted that despite headline growth holding at 5%, underlying momentum in 2025 appears weaker, pressured by subdued consumption, sluggish investment, a cooling labor market, and falling home prices.

“China has diversified its export partners toward Europe and Africa,” Pilarmas said, noting that net exports contributed about one-third of national growth in 2025, the strongest contribution since 1997. The brokerage added that China’s 2035 advanced-economy ambition implies average growth of around 4.17%.

Meanwhile, Goldman Sachs Group Inc. and Standard Chartered Plc have revised down their US growth projections to 4.5% and 5%, respectively.

Despite global uncertainties, Pilarmas said Indonesia’s equity market has remained resilient, with the JCI continuing to climb even as the rupiah weakens, supported by attractive domestic prospects and policy momentum.

On the fiscal front, the government’s Free Nutritious Meal (MBG) program is targeted to reach 82.9 million beneficiaries in 2026, with implementation expected within five months through May. Backed by an accelerated rollout of nutrition service units (SPPG kitchens), the program carries a Rp 335 trillion budget, sharply higher than last year, and is expected to generate strong multiplier effects through domestic demand. Beneficiary sectors include food, agriculture, livestock, fisheries, logistics, and MSMEs, while also supporting job creation and long-term human capital improvement. Pilarmas cautioned, however, that the scale of spending requires strong governance to prevent inefficiencies and fiscal strain.

Regionally, Asian markets opened mostly lower. Japan’s Nikkei slipped 0.44% to 53,348, South Korea’s Kospi eased 0.08% to 4,900, and Hong Kong’s Hang Seng fell 0.07% to 26,544. China’s Shanghai Composite initially rose 0.04% to 4,116 before turning lower.

US markets provided no lead, as Wall Street were closed on Monday for the Martin Luther King Jr. Day holiday.

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