Indonesian Stocks Rise in Defiance of US Tariffs

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) saw a bullish start to the week on Monday, February 23, 2026, as the Jakarta Composite Index (JCI) surged in response to a complex global trade landscape. Investors are currently balancing optimism over U.S. judicial interventions against the backdrop of fluctuating trade policies from Washington.

The JCI opened strong, climbing 62.77 points (0.76 percent) to reach 8,334.54. This upward momentum was mirrored by the LQ45 index, representing Indonesia’s most liquid blue-chip stocks, which gained 6.43 points (0.77 percent) to sit at 841.71.

Market analysts suggest that this morning’s rally could be the precursor to a significant milestone. According to Ratna Lim, Head of Research at Phintraco Sekuritas, the index is positioned to challenge higher resistance levels if current momentum holds.

"The IHSG is expected to move within the range of 8,250 to 8,380 this week. It has the potential to test the 8,400 level if it manages to close above 8,350," Ratna Lim noted in her market analysis, as quoted by Antara.

On the home front, the primary focus remains on the Agreement on Reciprocal Trade (ART) between Indonesia and the United States. Following the US Supreme Court's decision to strike down certain reciprocal tariffs, Indonesian market participants are closely watching the ratification process.

While the agreement has been signed, it has not yet reached full legal effect. "As long as the ratification law has not been approved by the Indonesian House of Representatives, Indonesia is not yet legally bound by the agreement. This development could serve as a positive catalyst for domestic stock movements," Ratna explained.

Beyond trade, local investors are also adjusting to new regulatory requirements where 267 listed companies are mandated to increase their public shareholding (free float) from 7.5 percent to 15 percent.

The positive sentiment in Jakarta follows a wave of optimism from Wall Street and European markets, sparked by the US Supreme Court’s decision to invalidate President Donald Trump’s reciprocal tariffs. This move was welcomed by investors hoping for reduced corporate costs and eased inflationary pressures.

However, the outlook remains volatile. In response to the court ruling, President Trump announced a new 10 percent global tariff via executive order, later suggesting an increase to 15 percent. This comes at a time when US economic data shows a sharp slowdown, with GDP growth dropping to 1.4 percent in Q4-2025 compared to 4.4 percent in Q3-2025, while PCE inflation crept up to 2.9 percent.

The Monday morning market performance across the Asian region showed a mixed and volatile landscape. In Japan, the Nikkei index faced a significant decline, dropping 1.12 percent to the 56,825.70 level. China's Shanghai index followed a similar downward trajectory, falling 1.26 percent to settle at 4,082.07.

In contrast, other regional markets saw strong gains; the Hang Seng in Hong Kong surged by 2.65 percent, climbing to 27,111.00, while Singapore’s Straits Times index posted a modest increase of 0.27 percent to reach 5,031.49. ***