Jakarta Composite Index rises amid optimism over improved trade climate following US Supreme Court ruling

Jakarta (ANTARA) - The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) closed higher on Monday afternoon amid market optimism over an improving global trade climate following the United States Supreme Court’s decision to strike down President Donald Trump’s trade tariffs.

The JCI closed up 124.31 points or 1.50 per cent at 8,396.08, whilst the LQ45 blue-chip index rose 12.48 points or 1.49 per cent to 847.76.

“The market responded positively following the US Supreme Court’s decision to annul President Trump’s global trade tariffs. The ruling will certainly provide hope and an improvement in the global trade climate,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis in Jakarta on Monday.

Nico explained that the Supreme Court’s decision to overturn the tariff policy and replace it with a 10 per cent tariff represents a significant development for the business world.

The move has triggered concerns that trade agreements between the US and its partners could unravel, although senior US officials have affirmed that existing deals will remain in force.

“As a result, market participants appear to still be taking a wait-and-see approach regarding the evolving policy dynamics in the US with respect to tariff implementation,” Nico said.

On the domestic front, President Prabowo Subianto affirmed that the Indonesian government respects the internal political process in the United States, signalling that Indonesia is preparing for all possible tariff adjustments.