JCI Drops 6.12 Percent, Fiscal Risk Increases For Uninteresting Stocks

JCI (Photo: Doc Antara)

JAKARTA - The movement of the Composite Stock Price Index (JCI) is currently at the level of 6,076.08, down 6.12 percent at the close of trading session I, Tuesday, March 18.

Associate Director of Research and Investment Pilarmas Investindo Sekuritas, Maximilianus Nico Demus assesses that there are several sentiments that are of concern to investors at this time.

According to him, all investors are starting to worry that the increasing fiscal risk in Indonesia has made many market players and investors ultimately decide to switch to other investments that are much safer and provide certainty of returns.

"So that the shares become unattractive, and maybe the bonds become shares after the shares," he told VOI, Tuesday, March 18.

Nico conveyed that factors from within the country, such as Indonesia's revenue, which decreased by 30 percent which resulted in the APBN deficit widening so that it required a larger debt issuance and of course the Rupiah was getting weaker.

"This has the potential to cause Bank Indonesia's interest rate to be more difficult to experience a decline," he said.

Nico added that the 30.19 percent decrease in tax revenue (YoY), which only reached Rp269 trillion, with the state budget deficit reaching Rp31.2 trillion as of February 2025, as well as a 7 percent decrease in government spending so that there was a 44.77 percent increase in debt in January 2025.

Meanwhile, from abroad, such as increased geopolotic tension because Putin wanted a longer war.

Nico conveyed his next sentiment, namely the greater tariff retaliation from the European Union, and concerns about the recession in America which continues to rise.