Oil Rally Spurs Market Sell-Off as Indonesia Stocks Drop 1.89%
Jakarta. Jakarta Composite Index (JCI) tumbled 1.89% or 138 points to 7,164 on Thursday, pressured by escalating geopolitical risks and rising oil prices that dampened sentiment across regional markets.
The index moved within a range of 7,152 to 7,323 during the second session, with trading volume reaching 30.46 billion shares. Total turnover stood at Rp 31.82 trillion ($1.88 billion), with more than 1.7 million transactions recorded. Market breadth was negative, with 292 stocks advancing, 380 declining, and 148 unchanged.
Top gainers were led by Agro Yasa Lestari (AYLS), which surged 34.55%, followed by Ace Oldfields (KUAS) gaining 29.11%, Tunas Alfin (TALF) jumping 25%, and Sunson Textile Manufacturer (SSTM) rising 24.80%.
On the losing side, Rockfields Property Indonesia (ROCK) dropped 15%, Indospring (INDS) fell 14.90%, Island Concepts (ICON) declined 14.86%, and Arthavest (ARTA) slipped 14.78%.
Pilarmas Investindo Sekuritas attributed the decline to a mix of external and domestic pressures, noting that the JCI weakened in line with broadly lower Asian markets, effectively ending a two-day rebound amid conflicting signals from the United States and Iran over potential peace talks.
“JCI weakened alongside regional Asian markets, which were dominated by declines, ending a two-day rebound amid mixed signals from the US and Iran regarding possible peace negotiations,” Pilarmas said.
On the geopolitical front, the White House confirmed that US President Donald Trump will visit Beijing on May 14–15 for a long-awaited summit with Chinese President Xi Jinping, after the meeting was previously delayed due to escalating tensions linked to the US-Iran conflict.
White House spokesperson Karoline Leavitt said the meeting will proceed on the new dates, with negotiations still ongoing. However, Iran has signaled it has no intention of holding direct talks with Washington, rejecting a US-backed ceasefire proposal and instead putting forward a five-point plan that includes control over the Strait of Hormuz.
Tehran also continued military escalation, launching attacks on Israel and Gulf Arab states, while Israel carried out airstrikes on Tehran and the US prepared to deploy additional troops to the region.
The Strait of Hormuz, a critical passage between Iran and Oman that typically carries about one-fifth of global oil supply, has remained largely closed since the conflict began, driving oil prices sharply higher. Prices have climbed around 40% since the start of the war, now entering its fourth week.
Brent crude rose 1.3% to $98.51 per barrel on Thursday after dipping below $95 the previous day, while US benchmark crude gained 1.6% to $91.75 per barrel.
Regionally, Asian markets were mostly lower. Japan’s Nikkei 225 fell 0.3% to 53,607, South Korea’s Kospi dropped 1.9% to 5,537, Hong Kong’s Hang Seng declined 1.4% to 24,978, and China’s Shanghai Composite slipped 0.6% to 3,909.
Despite external pressures, domestic sentiment found some support. Pilarmas noted that Indonesia’s economic resilience remains intact, backed by strong seasonal consumption during Ramadan and the Eid al-Fitr period.
Bank Indonesia also moved to curb speculative pressure on the rupiah by lowering the monthly cap on cash foreign exchange purchases to $50,000 from $100,000, effective April 1.
Meanwhile, Energy and Mineral Resources Minister Bahlil Lahadalia signaled that the government may ease production restrictions on nickel and thermal coal if prices remain elevated, following a meeting with President Prabowo Subianto.
Separately, the government is racing to finalize a coal export levy ahead of a targeted April rollout, aiming to boost state revenue as higher oil prices threaten to widen the fiscal deficit.
Finance Minister Purbaya Yudhi Sadewa said the policy is still under discussion and will be decided in a cross-ministerial coordination meeting. “It should be implemented on April 1 if everything is finalized tomorrow, but we still need to discuss it further in a coordination meeting,” Purbaya said in Jakarta on Wednesday.
Overnight, Wall Street closed higher, offering limited support. The S&P 500 rose 0.5% to 6,591, the Dow Jones Industrial Average gained 0.7% to 46,429, and the Nasdaq Composite advanced 0.8% to 21,929.
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