FX.co ★ Trump’s Remarks Trigger Sharp Decline in Indonesia Market

Indonesia’s IDX Composite dropped 79 points, or 1.1%, to 7,105 in Thursday’s morning session, reversing the previous day’s rally as U.S. futures retreated after President Trump signaled the possibility of further military strikes against Iran. In a national address, Trump characterized the war as an “investment in the future” and indicated that operations could be concluded within a month.

On the domestic front, February’s trade surplus narrowed as exports remained subdued while imports expanded at a double-digit rate. Nearly all sectors declined, led by industrials, infrastructure, basic materials, and energy. However, the downside was partly limited by easing inflation: headline CPI slowed to 3.48% in March, returning to the central bank’s target range, while core inflation also edged lower, underscoring softer demand.

Among the notable decliners were Barito Pacific (-4.1%), Vale Indonesia (-3.9%), Bumi Resources (-3.4%), and Pertamina Geothermal (-2.4%). On a weekly basis, local equities are stabilizing after losses over the previous five weeks. The IDX will be closed tomorrow in observance of Good Friday.