JCI Nosedives: IDX Suspends Trading After Record Decline
- ICMSS
- Mar 21
- 2 min read
Market instability deepens as JCI crashes, triggering emergency measures.
Economic and political uncertainty erode investor confidence in Indonesia.

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto
March 21, 2025 at 16:30 GMT+7
The Jakarta Composite Index (JCI) experienced a sharp 7% drop on Tuesday (3/18), marking it the steepest single-day decline since 2011. The Index drop, driven by a wave of panic selling, reflected rising concerns about global financial conditions and growing uncertainty in the markets.
In response to the sharp decline, the Indonesia Stock Exchange (IDX) enforced a 30-minute trading halt after the index fell over 5%, a preventive measure aimed at stabilizing the market and stopping further losses. Market volatility soared to its highest levels since the pandemic of the COVID-19 crisis, underscoring the growing unease among investors.
The sudden downturn left market participants cautious and put significant pressure on the market.

JCI screen at the Indonesia Stock Exchange | Source: Bloomberg Technoz/Andrean Kristianto
Investor concerns over budget reallocation under President-elect Prabowo and Indonesia’s fiscal discipline intensified as weak government revenue collection and an early budget deficit fueled market anxiety.
Adding to the uncertainty, speculation arose that Finance Minister Sri Mulyani Indrawati was resigning. However, Parliament Deputy Speaker, Sufmi Dasco Ahmad, denied the claims, affirming she remained in office. The uncertainty surrounding her position heightened investor concerns, leading to foreign capital outflows.
The Jakarta Composite Index tumbled as reports revealed a State Budget (APBN) deficit of Rp31.2 trillion (0.13% of GDP) and a 20.85% drop in state revenue by February 2025. Tax revenue contracted 30% YoY, reflecting weak business activity, economic slowdown, and regulatory uncertainty, further undermining market confidence.

Dasco Kunjungi BEI, Berikan Dukungan di Tengah Anjloknya IHSG | Source: Gerindra
Following a sharp market downturn, Finance Minister Sri Mulyani firmly denied resignation rumors, labeling them baseless attempts to shake investor confidence. The government reiterated its commitment to fiscal integrity amid rising concerns over budget reallocations by the incoming Prabowo administration.
In response, regulatory agencies launched coordinated measures to stabilize the rupiah and curb accelerating capital outflows triggered by policy uncertainty. The Financial Services Authority (OJK) emphasized its readiness to introduce additional protective actions if necessary. Market participants are now focused on the upcoming Bank Indonesia Board of Governors meeting, with growing expectations of potential interest rate adjustments or expanded liquidity support.
Analysts warn that volatility may persist in the near term unless fiscal and monetary authorities provide strong, coordinated signals of policy clarity and stability, especially given persistent global risk factors that continue to weigh on investor sentiment.
Source:
Bloomberg
CNBC
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