JCI Drops And Is Affected By Trading Halt, Investors Allegedly Worried About Indonesia's Economy

JCI (Photo: Doc Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is currently at the level of 6,146.91, down 5.02 percent in the trading session I, Tuesday, March 18.

Head of Customer Literation and Education Kiwoom Sekuritas Indonesia, Oktavianus Audi see the current decline in the JCI which is more than 4 percent showing anomalies when compared to other positive Asian regional exchanges, such as Nikkei 1.4 percent, Shanghai 0.09 percent, STI 1 percent and FKLCI 1 percent.

According to him, this could show investor concerns about the Indonesian economy and the financial market because Indonesia's premium risk is currently relatively high when compared to the United States.

"If you look at Indonesia's premium risk, it is also relatively high when compared to the US, this is in line with CDS which has slightly increased to 76bps, as of February 27, 2025, FX risk in line with Rupiah's 0.6 percent depreciation for the January-February 2025 period, SBN spread with US Treasury 10 Years wide of 255 basis points (bps) and also the impact of global and domestic policies," he told VOI, Tuesday, March 18.

In addition, Audi conveyed that from cutting Indonesia's stock ratings, such as by Morgan Stanley and Goldman Sachs, which are indeed worrying regarding the widening of the budget deficit in line with encouraging risk fiscals.

Furthermore, foreign selling pressure which is still very strong, was recorded as of March 17, 2025, which recorded an outflow of IDR 26.9 trillion.

"We see that if the JCI continues to be -5 percent and more, then the regulator may do the trading stop to stabilize the market," he said.

Previously, PT Bursa Efek Indonesia (IDX) decided to temporarily freeze trading on the trading system at 11:31 p.m. Jakarta Automated Trading System (JATS) time.

"We inform you that today, Tuesday, March 18, 2025, there has been a temporary suspension of trading (trading stop) trading system on PT Bursa Efek Indonesia (IDX) at 11:19:31 p.m. Jakarta Automated Trading System (JATS) time," he wrote in an official statement from the Indonesia Stock Exchange, Tuesday, March 18.

Meanwhile, the statement explained that this freeze was triggered by a decrease in the Composite Stock Price Index (JCI) which reached 5 percent.

In addition, this step was taken in accordance with the IDX's Board of Directors Decree Number: Kep-00024/IDX/03-2020 dated March 10, 2020 regarding Changes in the Guidelines for Trading Sustainability on the Indonesia Stock Exchange in Emergency Conditions.

"This is done in accordance with the IDX's Board of Directors Decree Number: Kep-00024/BEI/03-2020 dated March 10, 2020 regarding Changes in the Guidelines for Trading Sustainability on the Indonesia Stock Exchange in Emergency Conditions," he wrote.

The trade will continue at 11:49:31 WIB without any changes in the trading schedule.