Indonesia's Stock Exchange (IHSG) Falls Again: Impact of VAT Policy? (Tuesday, December 17, 2024)

The Jakarta Composite Index (IHSG) weakened by 1.39% to 7,157.73 at the close of trading on Tuesday (17/12/2024), continuing its downward trend since Thursday of last week (12/12/2024).

According to Pilarmas Sekuritas, the index fell today because market players are digesting the policy of raising the Value Added Tax (VAT) rate from 11% to 12%, which will take effect starting January 2025.

Pilarmas Sekuritas assesses that the VAT rate increase will impact public purchasing power, and is predicted to slow down domestic economic growth, as well as increase production costs borne by businesses.

"This increase in production and consumption costs will weaken public purchasing power," wrote Pilarmas Sekuritas in its study, as reported by *Katadata*, Tuesday (17/12/2024).

Based on the IDX-IC Sectoral Index, all 11 domestic stock sectors were corrected today.

The industrial sector fell the most, by 2.32%, followed by the basic materials sector and the finance sector, which fell by 1.87% and 1.56% respectively.

According to RTI Business data, the frequency of stock trading on the exchange today was 1.08 million transactions.

A total of 18.58 billion shares changed hands, with a total transaction value of Rp 11.8 trillion.

441 stocks closed lower today, 188 stocks were stagnant, and 157 stocks strengthened.

The issuer with the code TRUS became the *top loser* today after plunging 25%, followed by AKSI and SNLK, which fell by 18.94% and 18% respectively.

On the other hand, the *top gainers* today were KJEN and MMIX, both soaring 34.15%, and POLU, which rose 24.53%.

In line with the IHSG, all Asian markets this afternoon closed in the red. The Nikkei index fell 0.24% to 39,364.68; the Hang Seng index fell 0.48% to 19,700.48; the Shanghai index fell 0.73% to 3,361.48; and the Strait Times index fell 0.55% to 3,799.93.