TEMPO.CO, Jakarta - The Composite Stock Price Index (IHSG) opened lower by 10.09 points, or 0.15 percent, to 6,890.84, after Trump announced a 32 percent reciprocal tariff on Indonesia.
This morning, a group of 45 leading stocks, or the LQ45 Index, fell by 2.63 points, or 0.34 percent, to 764.87. The IDX Composite is expected to move variably as market participants observe the trade agreement between Indonesia and the United States (U.S.).
Indonesia received a letter from Trump stating that Indonesia will be subject to a 32 percent tariff starting from August 1, 2025, and a higher transshipment tariff. The U.S. threatens to impose higher tariffs if Indonesia attempts to retaliate.
But if Indonesia or Indonesian companies hope to move production to the U.S., they will not be subject to tariffs.
"Technically, despite indications of the IHSG having the potential for a technical rebound, it is not yet supported by strong volume. If the IHSG can hold above the 6,900 level, there is a potential for further rebound if accompanied by an increase in volume. However, if the IHSG fails to hold above the 6,900 level, it is estimated that it will retest the support level at 6,800," said Analyst Phintraco Sekuritas Ratna Lim in Jakarta, on Tuesday.
Several countries will be subject to higher tariffs starting from August 1, 2025, including South Korea, Japan, Malaysia, Kazakhstan, South Africa, Laos, and Myanmar.
Trump confirmed that reciprocal tariffs will take effect from August 1 for countries that have not reached a trade agreement with the U.S. Additionally, there will be an additional 10 percent tariff for countries that support the BRICS alliance policies.
President Trump's move is expected to once again push for an escalation of trade tensions that could negatively impact the global economy.
On the other hand, market participants are awaiting the release of the Consumer Confidence Index for June 2025 and the listing of a number of IPO stocks.
Meanwhile, the Asian regional stock exchanges this morning include the Nikkei index rising by 24.46 points, or 0.57 percent, to 39,725.69; the Shanghai index rising by 4.54 points, or 0.40 percent, to 3,450.87; the Hang Seng index rising by 257.30 points, or 1.24 percent, to 23,965.55; and the Strait Times index gaining 0.11 points, or 0.44 percent, to 4,010.79.
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