Jakarta – In a surprising turn, Indonesia’s benchmark stock index stood firm on Monday, May 19, 2025, posting gains while most Asian markets tumbled in response to renewed concerns over the U.S. fiscal outlook.
The Jakarta Composite Index (JCI) climbed 0.49%, gaining 34.56 points to close at 7,141.09. Trading activity was brisk, with a transaction value reaching Rp14.8 trillion and trading volume hitting 25.51 billion shares across 1.43 million transactions.
A total of 409 stocks advanced, while 225 declined and 173 remained unchanged. The JCI touched an intraday low of 7,085.97 and peaked at 7,160.65.
According to Bloomberg Technoz, top-performing sectors included transportation, basic materials and energy, which rose 3.09%, 1.99% and 1.96%, respectively. The industrial and infrastructure sectors also contributed to the market’s gains, rising 0.80% and 0.54%.
In contrast, major stock markets across Asia closed in the red. By 5 p.m. Jakarta time, indices such as Taiwan’s TW Weighted, Malaysia’s KLCI, South Korea’s KOSPI, Japan’s Nikkei 225, Singapore’s Straits Times and Hong Kong’s Hang Seng all posted losses ranging from 0.05% to 1.46%. Only Indonesia’s JCI and China’s Shenzhen Composite Index closed in positive territory, gaining 0.49% and 0.33%, respectively.
The broader regional decline followed Moody’s downgrade of the United States’ long-term credit rating from Aaa to Aa1. The rating agency cited rising fiscal deficits and the growing burden of federal debt, attributing the lack of reform to persistent political gridlock in Washington.
Moody’s expects the U.S. federal deficit to expand to nearly 9% of GDP by 2035, up from 6.4% in 2024, due to surging interest payments, entitlement spending and sluggish revenue growth.
The downgrade has raised fears that investors may demand higher yields on U.S. Treasury bonds, potentially rippling through global financial markets and undermining risk assets like emerging market equities.
This move follows earlier downgrades by Fitch Ratings in 2023 and S&P in 2011. Moody’s now forecasts U.S. federal debt to reach 134% of GDP by 2035, up from 98% in the previous year.
Domestically, analysts view the JCI’s resilience as a positive indicator. With steady domestic sentiment and disciplined fiscal policy, Indonesia’s stock market may continue its upward trajectory despite global headwinds.
