On March 18, Indonesia’s stock market witnessed its biggest single-day drop in over a decade, triggering a temporary trading halt for the first time since the pandemic. The Jakarta Composite Index (JCI) plunged as much as 7.1%, its steepest intraday decline since September 2011, as concerns over the country’s economic slowdown and weak consumer spending weighed on investor sentiment.
Leading the losses were PT DCI Indonesia, a data center services provider, and PT Bank Rakyat Indonesia, with the former hitting the 20% lower limit for the day.
Trading stopped temporarily for 30 minutes when the market fell over 5%, a level that triggers a halt. After trading resumed, however, the decline continued. If the index falls 10% on one trading session, an additional halt might be triggered. Meanwhile, the Indonesian rupiah lost 0.3% against the US dollar, becoming Asia’s worst-performing currency so far in 2025.
There has been growing unease amongst investors in light of President Prabowo Subianto’s recent policy decisions, which involve siphoning off funding to his priority projects. Indonesia has also registered a rare first-quarter deficit in its budget, with state revenues decreasing over 20% on a yearly basis.
According to SGMC Capital fund manager Mohit Mirpuri, position unwinding and forced liquidations, particularly by margin traders, drive the sell-off. He added that weak sentiment and lack of fresh money before a long holiday break also added to the pressure in the market.
Indonesian stocks are one of the worst-performing markets globally in 2025, as foreign investors have pulled out approximately $1.65 billion worth of local stocks. Foreign funds have also been pushed out by the appreciating US dollar and intensifying trade tensions.
Now, investors wait for Bank Indonesia’s decision on March 19 to set the interest rate, as policymakers might intervene to prop up the currency and restore confidence in the market.
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Source: straitstimes.
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