Jakarta. Jakarta Composite Index (JCI) opened higher on Wednesday, rebounding 0.34% or 24 points to 7,096 as investors positioned ahead of the Federal Reserve decision while navigating persistent geopolitical risks.

The benchmark moved within a range of 7,093–7,015 in early trade.

RTI data showed 2.51 billion shares traded in the opening minutes, with total value reaching Rp 603.89 billion ($34.94 million) across 82,654 transactions. Gainers led with 311 stocks advancing, against 137 decliners and 192 unchanged.

Earlier reports indicated that Iran had submitted a new proposal to end its two-month conflict with the US and Israel, including reopening the Strait of Hormuz, briefly lifting hopes for de-escalation.

However, Kiwoom Sekuritas Indonesia said US President Donald Trump and his team remained skeptical, as the proposal delayed discussions on Tehran’s nuclear program — the core issue since the conflict began.

“This disappointment led to the cancellation of sending US negotiators to Pakistan, while simultaneously dampening market hopes for a quick resolution,” Kiwoom said.

Trump also described Iran as being in a state of “collapse” and urged the reopening of the Strait of Hormuz amid internal uncertainty in Tehran.

Meanwhile, a US naval blockade has begun to pressure Iran’s energy exports, raising the risk of production declines and domestic fuel shortages.

“With diplomatic channels at a stalemate again and energy supply disruptions continuing, the market is increasingly pricing in a ‘higher for longer’ interest rate scenario, as inflation risks rise once more,” Kiwoom added.

On Wall Street, major indexes pulled back from record highs on Tuesday as AI stocks weakened and oil prices climbed amid the Iran conflict. The S&P 500 fell 0.5%, the Dow Jones Industrial Average dropped 25 points or 0.1%, and the Nasdaq Composite slid 0.9%.

Domestically, Phintraco Sekuritas said the government plans to introduce incentives in the form of import duty exemptions, setting tariffs at 0% for LPG and selected plastic products for six months.

The policy aims to ease public burden and contain inflation as prices for both commodities rise amid prolonged Middle East tensions. Currently, LPG imports are subject to a 5% tariff, which will be removed starting May 2026. The government will also expand the range of plastic products eligible for 0% import duty.

Phintraco added that investors are now awaiting the outcome of the Federal Reserve meeting and comments from Fed Chair Jerome Powell, both due on Wednesday US time.

US economic data releases this week include building permits, durable goods orders, and housing starts, along with the PCE price index and first-quarter 2026 GDP data scheduled for Thursday.

In regional markets as of 9:17 a.m. Jakarta time, South Korea’s Kospi rose 0.03% to 6,642, Hong Kong’s Hang Seng gained 0.94% to 25,922, and China’s Shanghai SSE slipped 0.14% to 4,073. Japan’s Nikkei was closed for a public holiday.

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