Indonesia's stock benchmark rises 0.6% to 7,440.29 at open

Indonesia's stock benchmark rises 0.6% to 7,440.29 at open

Indonesia's stock benchmark, the IDX Composite Index, opened at 7,440.29 on Monday, July 2, 2025, marking a 0.6% increase from the previous close. The rise was driven by gains in the Infrastructure, Agriculture, and Basic Industry sectors, which led shares higher.

The best performers of the session were Eagle High Plantations Tbk (JK:BWPT), which rose 34.57% or 28.00 points to trade at 109.00 at the close, and Wir Asia Tbk PT (JK:WIRG), which added 32.29% or 31.00 points to end at 127.00. Meanwhile, Reliance Securities Tbk (JK:RELI) was up 24.78% or 140.00 points to 705.00 in late trade [2].

The Indonesian government's recent trade agreement with the United States, which included a reduction in import tariffs from 32% to 19%, may have contributed to the optimism in the market. In exchange for the tariff reduction, Indonesia agreed to purchase USD 15 billion in U.S. energy, USD 4.5 billion in agricultural products, and 50 Boeing aircraft [3].

The U.S. Dollar Index Futures was down 0.27% at 97.93, and USD/IDR was up 0.37% to 16,321.70. Crude oil for September delivery was down 0.27% or 0.18 to $65.87 a barrel, while Brent oil for delivery in September fell 0.35% or 0.24 to hit $69.04 a barrel [2].

However, the stock market's rise was not uniform, with Cipta Selera Murni Pt (JK:CSMI) falling 14.87% or 87.00 points to trade at 498.00 at the close, and Merry Riana Edukasi Tbk PT (JK:MERI) declining 14.69% or 83.00 points to end at 482.00. Shares in Eagle High Plantations Tbk (JK:BWPT) rose to 3-years highs, while shares in Cipta Selera Murni Pt (JK:CSMI) fell to 3-years lows [2].

Investors remained cautious after the US Federal Reserve held interest rates steady for a fourth straight meeting, despite signaling two potential rate cuts later this year. The Fed’s downward revision of its GDP forecasts for 2025 and 2026, along with raised inflation expectations, also added to the pressure [4].

The Indonesian stock market's performance is closely linked to geopolitical tensions and global economic conditions. As the market continues to navigate these challenges, investors will be watching for further developments in the trade agreement with the United States and other economic indicators.

References:
[1] https://www.tradingview.com/news/te_news:471582:0-u-s-tariff-on-indonesia-may-take-effect-before-august-1/
[2] https://www.investing.com/news/stock-market-news/indonesia-stocks-higher-at-close-of-trade-idx-composite-index-up-109-4143120
[3] https://en.tempo.co/read/2029460/trump-lauds-prabowo-after-tariff-talks-popular-strong-and-smart
[4] https://tradingeconomics.com/indonesia/stock-market