JAKARTA — The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (IDX) concluded trading on Wednesday, August 27, 2025, with a notable gain, defying the prevailing downturn across most Asian stock markets. The IHSG advanced by 30.42 points, or 0.38 percent, closing at a robust 7,936.18. Conversely, the LQ45 index, representing the top 45 blue-chip stocks, experienced a slight correction, dipping 4.14 points, or 0.51 percent, to settle at 813.47.
Market participants appeared to react positively to fresh data on China’s industrial profits, which indicated a recovery despite persistent weakness in its domestic demand. “The market seems to be responding to the release of China’s industrial profit data, which showed a recovery amidst their still-weak domestic demand,” stated the Pilarmas Investindo Sekuritas Research Team in their analysis from Jakarta on Wednesday, August 27, 2025.
Delving into the Asian economic landscape, China’s National Bureau of Statistics (NBS) reported that industrial profits fell by 1.5 percent year-on-year (YoY) in July 2025. This marked a significant deceleration from the 4.3 percent YoY decline observed in June 2025. On a year-to-date (YTD) basis, industrial profits contracted by 1.7 percent, improving from the 1.8 percent contraction recorded in June 2025, signaling a potential turn in the economic tide.
The market interpreted this slower pace of decline as a direct consequence of the Chinese government’s concerted efforts and support measures aimed at rejuvenating its economy. This perception of effective policy intervention likely contributed to the positive sentiment observed in certain regional markets, including Indonesia’s.
Meanwhile, concerns from the United States cast a shadow over global market confidence. Investors were reportedly apprehensive about the independence of the Federal Reserve (The Fed) following US President Donald Trump’s dismissal of Fed Governor Lisa Cook. Such political interventions in monetary policy are often viewed negatively by markets, potentially eroding trust and stability.
On the domestic front, encouraging news emerged as the Coordinating Minister for Economic Affairs announced that the United States had agreed in principle to exempt key Indonesian commodity exports—namely cocoa, palm oil, and rubber—from the 19 percent import duties imposed by President Trump since August 7, 2025. This development is a significant boost for Indonesia’s trade relations.
This positive update is widely expected to bolster Indonesia’s export competitiveness in the crucial US market, thereby providing substantial support to the national trade balance. The exemption could unlock new opportunities and strengthen the economic resilience of the archipelago.
The IHSG began the day on an upbeat note, opening stronger and maintaining its positive trajectory throughout the first trading session. It successfully remained in the green zone until the market’s final closing bell, showcasing sustained investor confidence in the Indonesian market despite broader regional headwinds.
An analysis of the IDX-IC Sectoral Index revealed a mixed performance, with six sectors registering gains. The industrial sector led the charge, soaring by 2.20 percent, closely followed by the raw materials sector with a 2.17 percent increase, and the property sector, which advanced by 2.11 percent. These sectors demonstrated particular strength during the trading day.
Conversely, five sectors experienced corrections. The non-primary consumer goods sector saw a decline of 0.97 percent, while the technology sector fell by 0.85 percent. The primary consumer goods sector also retreated, losing 0.53 percent, indicating selective pressure on certain market segments.
Among the individual stocks, the biggest gainers included MITI, HUMI, BSBK, KETR, and PGUN, which saw significant upward movement. In contrast, the stocks experiencing the deepest declines were JECC, RELI, RGAS, FITT, and KRYA.
Overall market activity was robust, with a recorded trading frequency of 2,304,642 transactions. A substantial volume of 41.21 billion shares changed hands, amounting to a total value of Rp 21.57 trillion. The market breadth indicated a fairly balanced session, with 335 stocks strengthening, 327 weakening, and 142 remaining stagnant.
Across the broader Asian region, the afternoon saw varied performances. Japan’s Nikkei index gained 86.10 points, or 0.20 percent, closing at 42,480.00. However, most other key indices experienced losses: Hong Kong’s Hang Seng index declined by 323.16 points (1.27%) to 25,201.76, the Shanghai Composite dropped 68.03 points (1.76%) to 3,800.35, and the Straits Times index in Singapore edged down 3.62 points (0.09%) to 4,240.09. This regional context further underscored the IHSG’s strong and somewhat isolated performance.
Summary
The Jakarta Composite Index (IHSG) closed on August 27, 2025, with a notable gain of 0.38 percent, reaching 7,936.18, defying the downturn in most other Asian stock markets. This positive performance was largely attributed to a perceived recovery in China’s industrial profits and a significant boost from the US agreeing to exempt key Indonesian commodity exports—cocoa, palm oil, and rubber—from import duties. Meanwhile, concerns over the independence of the US Federal Reserve added a degree of caution to global market sentiment.
On a sectoral level, six sectors of the IDX-IC index registered gains, with industrial, raw materials, and property leading the advance, while five sectors, including non-primary consumer goods and technology, experienced corrections. Overall market activity was robust, showing a fairly balanced session with 335 stocks strengthening against 327 weakening. The IHSG’s upward trajectory stood out, particularly as most other major Asian indices, such as the Hang Seng and Shanghai Composite, saw declines.