Global Markets React to US Tariffs and Indonesian Stock Market Rebound Amidst Economic Uncertainty

Global markets are experiencing volatility due to recent trade policies and economic uncertainties. On March 5, 2025, the Jakarta Composite Index (IHSG) in Indonesia rebounded sharply, opening 1.33% higher at 6,465.25, with a transaction value of IDR 1.16 trillion. This followed a previous 2% drop, influenced by conglomerate stock declines and external pressures. President Trump's earlier announcement of 25% tariffs on Canada and Mexico, despite warnings of consumer price increases, has stoked fears of a trade war. Commerce Secretary Howard Lutnick hinted at potential compromise deals, which briefly boosted U.S. stock futures. Indonesia's market faces additional pressures from foreign capital outflows, totaling IDR 18.05 trillion in net sales over the past month, and domestic regulatory uncertainties. The IHSG's recovery is supported by gains in banking and previously struggling conglomerate stocks. Investors are also closely watching the impact of new investment institutions and gold banks on the capital market. These events highlight the interconnectedness of global markets and the impact of trade policies and domestic factors on investor sentiment.