Associated Press, Ria Fortuna Wijaya, Jakarta – Fresh turbulence in global trade policy spilled into Indonesia's equity market on Tuesday, sending the Jakarta Composite Index (JCI) down 1.37% as investors weighed US tariff escalation and domestic fiscal risks.
The benchmark index moved within a wide range of 8,259 to 8,437 during the session. Trading activity remained heavy, with volume reaching 60.75 billion shares and turnover totaling Rp 29.51 trillion ($1.75 billion) across more than 3.4 million transactions. Decliners dominated the board, with 567 stocks falling against 153 gainers and 99 unchanged.
Among the top gainers, Cilacap Samudra Fishing Industry (ASHA) jumped 28.05%, Artha Mahiya Investama (AIMS) rose 25%, Bank Mega (MEGA) gained 24.70%, and Telefast Indonesia (TFAST) advanced 24.56%.
On the losing side, Sunson Textile Manufacturer (SSTM) slid 15%, Royaltama Mulia Kontraktorindo (RMKO) dropped 14.94%, while Berkah Prima Perkasa (BLUE) and Indospring (INDS) each fell 14.90%.
Pilarmas Investindo Sekuritas said Asian markets moved mixed amid rising uncertainty over US trade policy. The brokerage noted that investors reacted to remarks from US President Donald Trump, who threatened to raise global tariffs from 10% to 15% after the US Supreme Court struck down his emergency tariff policy.
Trump also warned countries against withdrawing from new trade agreements with the US. "The statement triggered renewed volatility in global markets as it is seen as potentially worsening international trade tensions," Pilarmas wrote in a research note on Tuesday.
From China, Pilarmas highlighted that the People's Bank of China (PBoC) kept its one-year Loan Prime Rate (LPR) at 3.0% and the five-year LPR at 3.5%. The decision suggests authorities are not rushing into further broad-based monetary easing after earlier targeted measures. "The market sees this step as reflecting efforts to balance support for economic growth with the need to maintain financial stability," Pilarmas said.
Domestically, investors were also monitoring the state budget deficit. As of Jan. 31, 2026, the budget deficit stood at Rp 54.6 trillion, equivalent to around 0.21% of gross domestic product.
State spending reached Rp 227.3 trillion, or 5.9% of the annual budget ceiling, while state revenue amounted to Rp 172.7 trillion.
In the short term, the deficit is viewed as part of the government's strategy to front-load spending early in the year to stimulate consumption and public investment, supporting economic growth in the first quarter of 2026. "However, in the long term, the market remains cautious about the risk of a widening fiscal deficit if pressures on the state budget are not carefully managed," Pilarmas added.
Globally, shares were mixed on Tuesday after US stocks slumped on heavy selling in companies perceived as potential losers in the artificial intelligence boom.
A report by New York-based Citrini Research outlined a scenario in which AI dominance could erode the "human-centric consumer economy," with severe consequences for employment. The report warned that "policy response has always lagged economic reality, but the lack of a comprehensive plan is now threatening to accelerate a deflationary spiral."
Despite the broader risk-off mood, chipmakers and AI-related companies posted gains.
In Asia, Japan's Nikkei 225 surged 0.9% to 57,321, supported by a 4.5% rise in Advantest and a 2.1% gain in Disco Corp. Mainland China markets advanced after reopening from a weeklong holiday, with the Shanghai Composite rising 0.9% to 4,117. However, Hong Kong's Hang Seng slipped 1.8% to 26,590 as traders locked in recent gains. South Korea's Kospi climbed 2.1% to 5,969, setting a fresh record, driven by a 3.6% jump in Samsung Electronics and a 5.7% increase in SK Hynix.
On Wall Street, US stocks had closed sharply lower on Monday after Trump signaled temporary 15% tariffs following the Supreme Court ruling. The S&P 500 fell 1% to 6,837, the Dow Jones Industrial Average dropped 1.7% to 48,804, and the Nasdaq Composite declined 1.1% to 22,627.
The rapid shift in US trade policy underscores lingering uncertainty over the global economic outlook, as investors brace for further legal battles and await greater clarity on the direction of international trade.
Source: https://jakartaglobe.id/business/trade-uncertainty-spillovers-and-deficit-worries-drag-jci-13