IHSG Predicted to Rise as Concerns Over Global AI Disruption Ease
Jakarta (ANTARA) - The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (IDX) is predicted to move up or strengthen on Thursday as concerns about Artificial Intelligence (AI) disruption at the global level ease.
The IHSG opened higher by 29.13 points or 0.35 percent to 8,351.36. Meanwhile, the group of 45 leading stocks or the LQ45 index rose 2.55 points or 0.30 percent to 845.62.
“Stocks in the United States (US) experienced a rally and strengthening of assets that had previously been under pressure, as concerns about Artificial Intelligence (AI) disruption eased and the focus shifted to data center and power capital expenditures,” said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta, Thursday.
From abroad, the Wall Street Stock Exchange in the US strengthened significantly for two consecutive days, led by the technology sector after Nvidia reported fourth-quarter 2025 performance that exceeded market expectations.
Concerns about AI disruption eased after the agreements between Meta and AMD, and the expansion of the Anthropic partnership, which means that Nvidia’s current report is now seen as important as US inflation and employment data in determining the direction of the global market.
On the other hand, according to Liza, market players still weigh long-term risks beyond quarterly projections.
Meanwhile, US President Donald Trump reaffirmed his commitment to continuing the tariff agenda in his State of the Union address, even though the Supreme Court has limited his authority, while the US has imposed a global import tariff of 10 percent and opened the option of increasing it to 15 percent.
“The uncertainty of implementation and scope of tariffs, as well as the direction of policy towards Iran and nuclear negotiations in Geneva, remain a source of geopolitical risk and global energy volatility,” said Liza.
Domestically, the tariff agreement between Indonesia and the US is accelerating cooperation in the upstream and downstream of critical minerals and the elimination of export restrictions to the US.
On the other hand, the government has affirmed that there will be no exports of raw ore, and foreign investors are welcome to build smelters in Indonesia and export refined products.
Meanwhile, the Ministry of ESDM held a bilateral meeting with the Ministry of Steel of India, to explore investment and strategic cooperation in the development of critical minerals and supporting facilities for Indonesian steel production, as part of efforts to strengthen energy resilience and national downstreaming.
This step is taking place amid India’s aggressive efforts to secure critical mineral supplies through cooperation with Brazil and participation in the semiconductor and AI supply chain initiative, in order to reduce dependence on China and ensure the security of electronic, clean energy, and defense materials.
On Wednesday (February 25), European stock exchanges strengthened, including the Euro Stoxx 50, which rose 0.91 percent, the UK’s FTSE 100 index, which rose 1.18 percent, the German DAX index, which rose 0.76 percent, and the CAC index, which rose 0.47 percent.
The US stock exchange on Wall Street also strengthened on Wednesday (February 25), including the S&P 500 index, which rose 0.81 percent to 6,946.13, the Nasdaq Composite index, which jumped 1.26 percent to 23,152.08, and the Dow Jones Industrial Average, which rose 0.63 percent to 49,482.15.
Regional Asian stock exchanges this morning, including the Nikkei index, rose 264.88 points or 0.45 percent to 58,848.00, the Shanghai index fell 13.54 points or 0.33 percent to 4,133.69, the Hang Seng index fell 122.22 points or 0.46 percent to 26,643.50, while the Strait Times index fell 11.21 points or 0.22 percent to 4,997.05.