High Geopolitical Tensions, Indonesian Stock Exchange Dropped (Thursday, June 19, 2025)

The Jakarta Composite Index (IHSG) fell by 1.96% or 139.15 points to close at 6,968.64 today, Thursday (June 19, 2025).

On the same day, Bank Indonesia (BI) expressed its concerns about the impact of global geopolitical events stemming from the Iran-Israel conflict.

BI Deputy Governor, Aida S. Budiman, stated that the tension could have a wide-ranging impact, particularly on global supply chains, and not just on commodity prices.

“From the financial market perspective, geopolitical tensions can affect the movement of the rupiah exchange rate. We remain committed to maintaining rupiah stability,” said Aida in a press conference following the BI Board of Governors Meeting (RDG) on Thursday (June 19, 2025).

Echoing Aida's sentiment, analysts also assessed that high geopolitical tensions caused Asian stock markets, particularly Indonesia's, to fluctuate and weaken.

“The IHSG and regional Asian stock exchanges weakened due to market players' anxieties fueled by the escalating conflict between Israel and Iran,” said Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, as reported by Antaranews.

Based on the IDX-IC Sectoral Index, all 11 stock sectors closed in the red. The transportation and logistics sector fell the most, by 3.84%, followed by the basic materials sector, which weakened by 3.76%, and the technology sector, which declined by 2%.

Domestic stock trading frequency today reached 1.44 million transactions. A total of 24.26 billion shares changed hands, with a total transaction value of Rp 13.95 trillion.

According to RTI Business data, 92 stocks closed higher today, 571 stocks weakened, and 139 stocks were stagnant.

Today's top gainer was CSIS, which soared 35%, followed by LABA and NZIA, which rose by 23.93% and 21.95%, respectively.

On the other hand, the stock with the code OBAT was the top loser after plummeting 15%, followed by CBUT and MBSS, which corrected by 14.97% and 14.89%, respectively.

Meanwhile, Asian markets this afternoon saw the following: the Nikkei index weakened by 1.02% to 38,488.34; the Shanghai index weakened by 0.79% to 3,362.10; the Hang Seng index weakened by 1.99% to 23,237.74; while the Straits Times index weakened by 0.68% to 3,894.18.

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