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IDX Composite closes lower after Trump's tariff threat
The IDX Composite (IHSG) dropped by 0.95 percent on Monday. Investors remained cautious because of US trade threats and local concerns over the VAT increase.
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An employee walks past a giant monitor showing the fluctuations of the Composite Index on Aug. 5, 2024, at the Indonesia Stock Exchange (IDX) in Jakarta. The IDX Composite (IHSG) dropped by 0.95 percent to close at 7,046.99 on Dec. 1, 2024. (Antara/Dhemas Reviyanto)
T
he Indonesia Stock Exchange (IDX) Composite index closed lower on Monday, falling by 0.95 percent to 7,046.99. The index was weighed down by broad sectoral declines, with only the energy and technology sectors posting modest gains.
Total trading volume for the day reached 19 billion shares, valued at Rp10.3 trillion (US$660 million). Out of the 791 stocks traded, 370 declined, 222 advanced and 199 remained unchanged.
Of the 11 sectors, 9 ended the day in negative territory.
The non-primary consumer goods sector led the losses, down by 2.69 percent. The financial sector followed with a 1.37 percent drop, while the health and raw materials sectors fell by 1.18 percent and 1.16 percent, respectively.
The property and real estate, industrial and transportation sectors all saw declines of 1.13 percent. Meanwhile, the infrastructure and primary consumer goods sectors weakened by 0.36 percent and 0.50 percent, respectively.
In contrast, the energy sector rose by 0.43 percent and the technology sector increased by 0.04 percent.
The LQ45 index mirrored the broader market trend, falling by 0.95 percent to 1,073.06.
Top gainers in the LQ45 were PT Alamtri Resources Indonesia (ADRO), which surged by 11.06 percent, PT Perusahaan Gas Negara (PGAS), which added 3.29 percent and PT United Tractors (UNTR), which gained 2.33 percent.
On the other hand, PT Mitra Adiperkasa (MAPI) led the losers, dropping by 7.30 percent. It was followed by PT Bank Negara Indonesia (BBNI), which declined by 5.42 percent, and PT Bank Jago (ARTO), which was down 5.30 percent.
Investors remained cautious, partly because of the latest statements from United States president-elect Donald Trump. Trump threatened to impose 100 percent import tariffs on BRICS countries, including Indonesia.
Mirae Asset Sekuritas senior market analyst Nafan Aji Gusta suggested that such geopolitical tensions might cause market players to be more cautious.
"This [Trump threat] is just a bluff. Who knows, the implementation [might] not happen. Who knows, the implementation will change," said Nafan on Monday, as quoted by katadata.co.id.
Market watchers are also anticipating potential moves from the Indonesian government, particularly regarding the possible postponement of the controversial 12 percent value-added tax (VAT) hike.
Hendra Wardana, founder of Stocknow.id, suggested that if the government announces a delay in VAT increase, investor sentiment might improve, particularly in the domestic market.
"I think the sectoral index in general will return to the positive area. But again, we will see domestic development when for example the 12 percent VAT has been postponed,” Hendra said on Monday, as quoted by investor.id.
“Moreover, these are positive things domestically that can be said to be positive catalysts for the economy and the IDX Composite itself."
