TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI/IHSG) strengthened after the long holiday break, rising at the start of trading on Wednesday, May 14, 2025. The recent agreement between the United States and China to lower tariffs is seen as the key driver behind the JCI's rally.
According to Antara, the JCI closed up by 147.08 points, or 2.15 percent, at 6,979.88. The LQ45 Index, which tracks 45 leading stocks, also rose by 21.71 points, or 2.84 percent, to 787.08.
Permata Bank Chief Economist Josua Pardede said the U.S.-China agreement prompted a positive market response.
"At the opening of today's trading, the stock market, the JCI, strengthened by more than 1 percent, or about 96 points. Although the impact is still temporary, and the trade agreement itself is still temporary, the response has been fairly positive," Josua said at the Permata Bank office in Jakarta on Wednesday, May 14.
Earlier, the United States and China held two days of intensive talks in Switzerland over the weekend. On May 12, both countries agreed to significantly lower import tariffs on each other's goods for a period of 90 days.
Under the agreement, the United States will reduce import tariffs on Chinese goods to 30 percent from the previous 145 percent. Meanwhile, China will lower import duties on American goods to 10 percent from 125 percent.
However, Josua emphasized that the effects of this agreement are only temporary, as many other issues remain in the U.S.-China trade negotiations.
"There is still competition over technology and the global supply chain, which will influence future negotiations between the two countries. But for now, the impact is indeed quite positive," he said.
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