October 31, 2025 | 09:54 am
TEMPO.CO, Jakarta - Senior Market Chartist at Mirae Asset Indonesia, Nafan Aji Gusta, stated that the decision of the United States Federal Reserve (The Fed) to cut interest rates by 0.25 basis points to the range of 3.75-4.00 percent would affect the stock index (IHSG) in the short term.
"In addition to the dynamics of The Fed, there is the dynamic of financial reports released in September 2025, which will certainly affect the index movement in the short term," said Nafan in a written statement quoted on Friday, October 31, 2025.
On the other hand, Nafan said that the Fed's move marks the end of its quantitative tightening policy on December 1, 2025. However, he mentioned that the Fed is concerned that inflation remains above the central bank's target.
Meanwhile, the Indonesian government is still negotiating tariff policies with the U.S. government and aiming for a zero percent U.S. tariff. "The tariff agreement is expected to be reached in November 2025," said Nafan.
Research and Development at the Indonesia Commodity and Derivatives Exchange (ICDX), Taufan Dimas Hareva, stated that the depreciation of the exchange rate (currency) of the rupiah is influenced by expectations that the Fed's benchmark interest rate will remain high for a longer period. "This follows several solid U.S. economic data, including GDP growth and stable weekly unemployment claims," he said on Thursday, October 30, 2025, as quoted from Antara.
The rupiah's exchange rate at the close of trading on Wednesday weakened by 9 points or 0.05 percent to Rp16,617 per U.S. dollar from the previous Rp16,608.
Bank Indonesia's Jakarta Interbank Spot Dollar Rate (JISDOR) on Wednesday also weakened to Rp16,631 per U.S. dollar from the previous Rp16,622.
Editor's Choice: Bank Indonesia Maintains Benchmark Rate at 4.75 Percent
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