Jakarta Composite Index strengthens amid market scrutiny of US tariff policy developments
Jakarta (ANTARA) - The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) moved higher on Monday as market participants monitored developments in United States tariff policy.
The JCI opened up 62.77 points or 0.76 per cent at 8,334.54, whilst the LQ45 blue-chip index rose 6.43 points or 0.77 per cent to 841.71.
“The JCI is expected to move within the 8,250–8,380 range this week. It has the potential to test the 8,400 level if it can close above 8,350,” said Phintraco Sekuritas Head of Research Ratna Lim in her analysis in Jakarta on Monday.
On the domestic front, market participants are watching the Indonesian government’s next steps following the cancellation of reciprocal tariffs in the United States, given that Indonesia has signed an Agreement on Reciprocal Trade (ART) with the US.
However, the agreement has not yet taken effect as it still requires ratification in both countries. Until the ratification legislation is approved by the House of Representatives (DPR), Indonesia is not legally bound by the agreement.
“These developments have the potential to serve as a positive catalyst for the domestic stock market,” Ratna said.
On the other hand, Ratna noted that market participants continue to watch the implications of the requirement for 267 listed companies to raise their free float from 7.5 per cent to 15 per cent.
Internationally, the US Supreme Court’s decision to overturn President Donald Trump’s reciprocal tariffs was received positively by investors, given expectations of relief for companies burdened by tariff costs, whilst also easing concerns over US inflation.
However, it remains unclear whether refunds will be issued for tariffs already paid. Trump responded by announcing a new global tariff of 10 per cent via executive order and subsequently declared he would raise it to 15 per cent.
Meanwhile, US GDP growth slowed to 1.4 per cent in the fourth quarter of 2025, down from 4.4 per cent in the third quarter. US PCE inflation rose to 2.9 per cent year-on-year in December 2025, up from 2.8 per cent in November 2025.
In trading on Friday (20 February), European stock markets closed uniformly higher, with the Euro Stoxx 50 up 1.18 per cent, the UK’s FTSE 100 up 0.56 per cent, Germany’s DAX up 0.87 per cent, and France’s CAC up 1.39 per cent.
US stock markets on Wall Street also closed higher on Friday, with the S&P 500 rising 0.69 per cent to 6,909.51, the Nasdaq up 0.87 per cent to 25,012.62, and the Dow Jones up 0.47 per cent to 49,625.97.
In Asian regional markets this morning, Japan’s Nikkei fell 642.13 points or 1.12 per cent to 56,825.70, the Shanghai index dropped 51.95 points or 1.26 per cent to 4,082.07, Hong Kong’s Hang Seng rose 699.65 points or 2.65 per cent to 27,111.00, and Singapore’s Straits Times index gained 13.17 points or 0.27 per cent to 5,031.49.