JAKARTA – The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (IDX) closed higher on Wednesday afternoon, mirroring gains across regional Asian markets. This upward momentum was primarily sparked by an announcement from US President Donald Trump, indicating that the United States could conclude its military involvement in Iran within two to three weeks.
The IHSG surged by 136.22 points, or 1.93 percent, to settle at 7,184.44. Concurrently, the LQ45 index, which tracks 45 of the most liquid blue-chip stocks, also advanced, rising 10.98 points or 1.53 percent to a position of 726.79.
“This sentiment was driven by US President Donald Trump’s statement that the US might conclude its military involvement in Iran within two to three weeks,” explained Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, in his analysis released in Jakarta on Wednesday (April 1, 2026).
Further contributing to market optimism, Iranian President Masoud Pezeshkian reportedly expressed a willingness to end hostilities, albeit with certain conditions, including international guarantees. “Naturally, this situation offers hope for a de-escalation of tensions between the US and Iran,” Nico added, underscoring the positive global implications.
Domestically, the manufacturing index showed a tendency to stagnate compared to the previous month but remained in an expansionary phase. S&P Global reported that Indonesia’s Manufacturing Purchasing Manager’s Index (PMI) registered a slight decline to 50.1 in March 2026, down from 53.8 in February 2026. Nico attributed this dip to “uncertainty stemming from geopolitical conflicts, supply chain disruptions, and rising raw material prices.”
In more encouraging local news, the Central Statistics Agency (BPS) announced that Indonesia’s trade balance for February recorded a substantial surplus of US$1.28 billion. This robust performance is a positive factor, bolstering the external resilience of the Indonesian economy. BPS also reported a manageable inflation rate for March, at 0.41 percent month-to-month (m-t-m) and 3.48 percent year-on-year (y-o-y). This rate falls within Bank Indonesia’s (BI) target range of 2.5 percent plus or minus 1 percent, reflecting a generally controlled inflationary environment.
The IHSG commenced trading with strength, successfully maintaining its positive trajectory throughout the first session. The index continued its upward climb in the second session, ultimately closing in the green, signaling strong investor confidence.
Visitors observe a digital screen displaying the movement of the Jakarta Composite Index (IHSG) at the Indonesia Stock Exchange (IDX) in Jakarta. – (Republika/Thoudy Badai)
An analysis of the IDX-IC Sectoral Index revealed that ten out of eleven sectors experienced gains. The industrial sector led the surge with an impressive 5.57 percent increase, followed by the non-primary consumer goods sector and the basic materials sector, which rose by 5.01 percent and 3.59 percent, respectively. Conversely, only one sector, healthcare, recorded a decline, slipping by 0.14 percent. The stocks experiencing the largest gains included CHEM, ALKA, YPAS, KOCI, and BULL, while the biggest decliners were DATA, NZIA, WEHA, TALF, and ATAP.
Overall market activity was high, with a recorded 2,014,275 stock transactions. A total of 31.54 billion shares were traded, amounting to a significant Rp 16.47 trillion in value. Out of all listed stocks, 475 advanced, 209 declined, and 135 remained unchanged.
The positive sentiment extended across regional Asian stock markets on Wednesday afternoon. The Nikkei index in Japan soared by 2,709.28 points or 5.31 percent to 53,773.00. China’s Shanghai Composite Index gained 56.69 points or 1.46 percent to 3,948.55. Hong Kong’s Hang Seng Index climbed 505.89 points or 2.04 percent to 25,294.03, and Singapore’s Straits Times Index rose 97.09 points or 1.99 percent to 4,982.54.
Rupiah Fluctuates Despite Strengthening
Meanwhile, the rupiah exchange rate showed resilience, strengthening by 58 points or 0.34 percent to Rp 16,983 per US dollar at Wednesday’s closing, up from its previous close of Rp 17,041 per US dollar. However, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) for the day paradoxically weakened slightly to Rp 17,002 per US dollar, from Rp 16,999 previously.
Muhammad Amru Syifa, from the Research and Development division of the Indonesia Commodity & Derivatives Exchange (ICDX), noted that the rupiah tended to fluctuate amid dominant external pressures. “Globally, the rupiah’s weakening is still influenced by the strong US dollar, increasing financial market uncertainty, and rising oil prices due to escalating conflict in the Middle East,” he elaborated in Jakarta on Wednesday.
These prevailing conditions, he added, have prompted a shift in fund allocation towards safer assets, thereby putting pressure on emerging market currencies. Furthermore, expectations surrounding the US Federal Reserve’s interest rate policies and the release of US economic data are cited as key market sentiments.
Domestically, Bank Indonesia’s strategic policies, including the Bank Indonesia Foreign Exchange Securities (SVBI) and Bank Indonesia Foreign Currency Securities (SUVBI) instruments, are expected to play a crucial role in maintaining foreign exchange stability and liquidity. However, Amru acknowledged that these measures have not yet been able to fundamentally alter the main trajectory of the rupiah’s movement. “In the short term, global dynamics will remain the primary determinant of exchange rate movements,” Amru concluded.
Data on rupiah movement from 2020 to 2025. – (Republika.co.id)