The Jakarta Composite Index (IHSG) experienced a notable upward movement on Thursday, August 28, 2025, successfully breaching the significant 8,000 level. Analysts attribute this positive market surge to the remarkably peaceful nature of recent labor demonstrations across the nation.
“The labor and student demonstrations held today were notably conducive and non-anarchic; this was a significant contributing factor,” stated economic analyst Ibrahim Assuaibi in his official remarks on Thursday, August 28, 2025, highlighting the market’s positive reaction to the calm atmosphere.
Thousands of workers from various regions across Indonesia took to the streets on Thursday, August 28, 2025, in a synchronized nationwide protest. This widespread movement aimed to draw attention to several government policies concerning critical labor issues, underscoring the collective voice of the workforce.
The demonstrators articulated six key demands during their peaceful action. Firstly, they called for the abolition of outsourcing practices and a definitive rejection of low wages. Secondly, they urged for an immediate halt to mass layoffs (PHK) through the establishment of a dedicated task force. Thirdly, they demanded comprehensive labor tax reform, proposing an increase in non-taxable income (PTKP) to IDR 7.5 million per month, along with the elimination of severance tax, holiday allowance (THR) tax, old age benefit (JHT) tax, and an end to tax discrimination against married women.
Furthermore, the fourth demand sought the immediate ratification of the labor bill, explicitly without the inclusion of any omnibus law provisions. Fifthly, workers pressed for the enactment of an asset forfeiture bill as a crucial step to eradicate corruption. Lastly, they called for a revision of the Election Bill, advocating for a redesign of the 2029 election system. Confirming the peaceful execution of these protests, Said Iqbal, Chairman of the Labor Party and President of the Confederation of Indonesian Trade Unions (KSPI), emphasized the orderly and conducive environment.
“Indeed, today the IHSG and the rupiah strengthened, largely influenced by these domestic factors,” Ibrahim further elaborated, cementing the connection between the market’s performance and the calm protest environment.
During the first trading session, the IHSG closed up by 66.95 points, or 0.84 percent, reaching 8,003.12. Throughout the trading session, the index demonstrated resilience, fluctuating within a range of 7,941 to 8,022, signaling robust market activity.
External Sentiment
Beyond internal dynamics, Ibrahim pointed out that external sentiments also played a role in the IHSG’s upward trajectory. A significant factor was the growing expectation of interest rate cuts by the United States Federal Reserve (The Fed), which often influences global market confidence.
“From an external perspective, New York Federal Reserve President John Williams indicated on Wednesday that interest rates are likely to decrease at some point,” Ibrahim explained. “However, policymakers still need to meticulously review upcoming economic data before making a definitive decision on whether a rate cut at the Fed’s September 16–17 meeting would be the most appropriate course of action.”
Summary
The Jakarta Composite Index (IHSG) significantly rose on Thursday, August 28, 2025, surpassing the 8,000 level and closing up 0.84% at 8,003.12. Analysts primarily attributed this positive market surge to the remarkably peaceful and conducive nature of nationwide labor and student demonstrations held on the same day. Thousands of workers presented six key demands, including abolishing outsourcing, halting mass layoffs, and reforming labor taxes, all conducted without incident.
In addition to domestic factors, external sentiments also contributed to the IHSG’s upward trajectory. Growing expectations of interest rate cuts by the United States Federal Reserve played a significant role. New York Federal Reserve President John Williams indicated a potential decrease in interest rates, though a definitive decision for the September meeting remains contingent on future economic data review.