JAKARTA — The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (BEI) closed weaker on Friday, November 21, 2025, as investor optimism for an interest rate cut by The Fed faded. The IHSG concluded the trading day down 5.57 points, or 0.07 percent, settling at 8,414.35. Similarly, the LQ45 index, representing 45 blue-chip stocks, also saw a decline, dropping 2.34 points, or 0.28 percent, to 845.68.
Market participants exercised caution in initiating new positions, largely influenced by a sell-off on Wall Street in the United States. According to the Research Team at Pilarmas Investindo Sekuritas in Jakarta on Friday, “The market appears hesitant to take on new positions following a sell-off on US Wall Street, as employment data failed to clarify the short-term interest rate outlook, thereby dimming market expectations for a December 2025 rate cut by The Fed.”
This cautious sentiment was further fueled by stronger-than-anticipated US employment figures. The economy added 119,000 non-farm jobs in September 2025, more than double the forecast increase of 50,000 jobs. Federal Reserve Governor Michael Barr reinforced the need for prudence, noting that the Fed must be careful with any further interest rate reductions given that inflation remains above target levels.
Adding to the domestic woes, geopolitical tensions escalated, particularly between China and Japan over Taiwan. Beijing’s announced plans to suspend Japanese seafood imports contributed additional pressure to an already skittish global market environment, impacting investor confidence across Asia.
A closer look at domestic performance via the IDX-IC Sectoral Index revealed a mixed bag. Five sectors posted gains, with the technology sector leading the way, surging by 2.43 percent. This was followed by the industrial sector and the non-primary consumer goods sector, which rose by 0.80 percent and 0.60 percent, respectively.
Conversely, six sectors experienced declines. The financial sector recorded the steepest drop, falling 0.75 percent. The infrastructure sector and the transportation & logistics sector also saw significant losses, decreasing by 0.71 percent and 0.65 percent, respectively, underscoring broad-based market weakness.
Individual stock performance highlighted key movers. The shares experiencing the largest gains included BUKK, INDO, GGRP, SMDM, and GPSO. In contrast, the biggest decliners were PURI, TIRA, SKLT, JATI, and AEGS, reflecting specific company-level challenges amidst the wider market downturn.
Overall trading activity on the BEI remained robust, with a total of 1,941,784 transactions recorded. This involved the exchange of 34.78 billion shares, amounting to a substantial transaction value of Rp16.47 trillion. Despite the high activity, market breadth indicated more losers than gainers, with 274 stocks rising, 352 declining, and 187 remaining unchanged in value.
Meanwhile, a glance at the broader Asian landscape revealed widespread negative sentiment. The Nikkei Index in Japan fell 146.44 points, or 2.30 percent, to 48,677.50. China’s Shanghai Index declined by 96.16 points, or 2.45 percent, to 3,834.89. Hong Kong’s Hang Seng Index retreated 615.55 points, or 2.38 percent, to 25,220.02, and Singapore’s Straits Times Index was down 43.19 points, or 0.96 percent, closing at 4,468.68.
Summary
The Jakarta Composite Index (IHSG) closed weaker on November 21, 2025, declining 0.07% to 8,414.35, as investor optimism for a Federal Reserve interest rate cut faded. This sentiment was influenced by a Wall Street sell-off and stronger-than-anticipated US employment data. Federal Reserve Governor Michael Barr’s caution about further rate reductions due to persistent inflation further dampened market expectations. Additionally, escalating geopolitical tensions between China and Japan, including China’s plan to suspend Japanese seafood imports, added to global market pressure.
Domestically, the market saw mixed sectoral performance, with five sectors gaining, led by technology, while six sectors declined, with financials experiencing the steepest drop. Despite robust trading activity, the market breadth showed more declining stocks than rising ones. This negative trend was reflected across broader Asian markets, as indices in Japan, China, Hong Kong, and Singapore also closed lower.