Indonesian stocks tumbled sharply on Tuesday as markets reopened following a weeklong public holiday, with trading briefly halted amid global anxiety over U.S. President Donald Trump’s sweeping tariffs.
The Jakarta Composite Index plummeted 9.19% at the opening bell—shedding 598.56 points to 5,912.06—its lowest level since June 2021. The sharp decline triggered an automatic 30-minute trading suspension, the stock exchange confirmed in a statement.
By 11:00 a.m. local time (0400 GMT), the market had pared some losses but remained down 7.82%, hovering just above the key 6,000 threshold.
The sell-off followed a global rout that intensified on Monday, with equity and oil markets plunging as Trump’s aggressive tariff measures raised fears of a worldwide recession. The U.S. president’s moves have drawn criticism globally, including from within his own Republican Party.
Trading in Jakarta resumed after the halt under heightened caution. The Indonesian Stock Exchange reiterated that a further 15% decline would prompt an additional suspension, while a 20% drop would shut markets for the remainder of the day. It also stated that any individual stock falling more than 15% would see sell orders below that level automatically rejected.
“The halt was a clear signal of the market’s deep concerns over rising global trade risks,” said Josua Pardede, Chief Economist at Permata Bank. “Investors are clearly pricing in the possibility of a full-blown trade war.”
Investor nerves were further frayed by the rupiah’s performance. Indonesia’s central bank said it had intervened aggressively in the offshore market ahead of the reopening and pledged to support the currency, which fell over 1% against the U.S. dollar on Tuesday.
The rupiah had already come under pressure in recent weeks amid skepticism over President Prabowo Subianto’s economic management and lingering concerns about Indonesia’s growth trajectory.
Tensions escalated after the Trump administration imposed a 32% tariff on Indonesian exports—well above the baseline 10% levy applied to most countries—dealing a heavy blow to one of Southeast Asia’s largest economies.
President Prabowo has ruled out immediate retaliation, opting instead for diplomacy. He announced that Jakarta would send a high-level delegation to Washington in an attempt to resolve the dispute and stabilize investor sentiment.