IDX Composite Strengthens Amid Positive Market Response to BI and The Fed Moves

SEAToday.com, Jakarta - The IDX Composite (IHSG) of the Indonesia Stock Exchange (BEI) strengthened on Thursday, driven by a positive market response to the Bank Indonesia (BI) and the Federal Reserve (Fed) decisions to maintain interest rates.

As of today, the IDX Composite has risen 63.85 points (1.01%) to 6,375.51, while the LQ45 Index increased 6.35 points (0.89%) to 718.02.

“The IDX Composite has the potential to move sideways with a slight tendency for correction,” said Fannya Suherman, Head of Retail Research at BNI Sekuritas, as quoted by Antara in Jakarta on Thursday.

This market movement follows the Fed’s decision to keep its benchmark interest rate steady, with officials considering two potential rate cuts later this year. Currently, the Fed’s interest rate remains between 4.25% and 4.5%, aligning with market expectations.

“All in all, the economy has shown significant progress over the past two years. Labor market conditions remain solid, and inflation is approaching the long-term target of 2%, although it is still slightly elevated,” said Federal Reserve Chair Jerome Powell in a press conference, as quoted by Antara.

Domestically, Bank Indonesia’s (BI) Board of Governors Meeting (RDG) on March 18-19, 2025, decided to maintain the BI-Rate at 5.75%, reflecting its commitment to economic stability.

In Japan, the Bank of Japan (BOJ) also decided to keep its interest rate at 0.5%, closely monitoring the impact of potential US tariff increases on Japan's export-driven economy.

Meanwhile, the US stock market surged on Wednesday (3/19), with Wall Street seeing strong gains. The Dow Jones Industrial Average climbed 383.32 points (0.92%) to 41,964.63, the S&P 500 Index jumped 60.63 points (1.08%) to 5,675.29, and the Nasdaq Composite added 246.67 points (1.41%) to 17,750.79.

Writer: Andi Raisa Malaha Thambas

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