RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) staged a sharp rebound on Thursday morning, January 22, 2026, as global market anxiety eased following a major policy shift from Washington.

Local equities rallied in step with international markets after US President Donald Trump withdrew his tariff threats against the European Union, signaling a thaw in transatlantic trade tensions.

The rebound was driven primarily by the de-escalation of Trump’s aggressive trade rhetoric. Weeks of volatility had been fueled by threats of phased tariffs of 10 to 25 percent on eight NATO countries and a 200 percent duty on French wine.

The sudden policy reversal coincided with reports of a “framework agreement” between the United States and Greenland. Washington also clarified that it would not resort to military force in pursuing its interests in Greenland.

“The JCI today, January 22, is predicted to rebound in the range of 8,950–9,070,” said Ratih Mustikoningsih, a financial expert at Ajaib Sekuritas, as quoted by Antara. She noted that the easing of global tensions provided a much-needed boost for domestic equities.

While international developments sparked the rally, domestic monetary policy provided the foundation. Bank Indonesia (BI), following its Board of Governors Meeting, kept the BI-Rate unchanged at 4.75 percent.

The central bank also maintained the Deposit Facility rate at 3.75 percent and the Lending Facility rate at 5.50 percent. The decision was aimed at stabilizing the Rupiah, which had plunged to a historic low earlier in the week.

By holding rates steady, BI reinforced its commitment to currency stability, a move welcomed by investors seeking protection against further depreciation.

At the opening bell, the Jakarta Composite Index (JCI) rose 0.46 percent to 9,052.16, while the blue-chip LQ45 index gained 0.53 percent to 876.05. The upbeat sentiment reflected gains on Wall Street, where the Nasdaq climbed 1.36 percent and the S&P 500 advanced 1.16 percent on Wednesday.

In Asia, the rally was even stronger, with Japan’s Nikkei surging nearly 2 percent in early Thursday trading. Shanghai’s Composite Index edged up 0.17 percent, while Singapore’s Straits Times rose 0.39 percent. Hong Kong’s Hang Seng, however, slipped 0.07 percent.

European markets closed mixed on Wednesday, with Germany’s DAX down 0.58 percent and the Euro Stoxx 50 falling 0.36 percent, while the UK’s FTSE 100 gained 0.11 percent and France’s CAC 40 edged up 0.08 percent.

Despite the uneven performance, the removal of the “tariff cloud” has set a bullish tone for emerging markets such as Indonesia as January draws to a close. ***