What sectors do you believe will be resilient in the face of escalating trade tensions and potential economic slowdown, and why?

Jakarta Stock Market Plunge: An expert’s Take on the CSPI Decline

The Jakarta composite Stock Price Index (CSPI) experienced a important drop recently, sparking concern among investors. To understand the situation better, we spoke with Ari Satrio, a leading financial analyst at jakarta-based Investa Global Advisors.

Understanding the CSPI Decline: an interview with Ari Satrio

archyde: Ari, thank you for joining us. The CSPI took a significant dive recently. What are the primary factors driving this downturn?

Ari Satrio: Thank you for having me. The primary driver is undoubtedly the escalating trade tensions, notably concerns about U.S. tariff policies under the previous governance. Specifically, announcements regarding tariffs on goods from Canada, Mexico, and China have rattled investor confidence, triggering a sell-off in the Jakarta stock market.

Impact of U.S. Tariffs and China’s Response

Archyde: The news mentions former President Trump’s tariff policies. How are these past policies still affecting today’s market in 2025?

Ari Satrio: While President Trump is no longer in office, the *threat* of reverting to those policies is still real. His pronouncements,even after leaving office,hold significant weight and influence market sentiment. His words suggesting a return to higher tariffs on key trade partners like Canada, Mexico and, especially, China has reactivated fears of a full-blown trade war, thereby negatively affecting the CSPI and other Asian stock markets.

navigating Market volatility and Investment Strategies

Archyde: China’s potential retaliatory measures seem to be adding to the anxiety. How significant is the impact of a potential trade war between the U.S. and China on the Indonesian market?

Ari Satrio: It’s significant. Indonesia, like many Southeast Asian economies, is heavily reliant on trade with both the U.S.and China. A trade war disrupts supply chains, increases inflation, and slows down economic growth. The anticipation of these consequences is what’s causing investors in Jakarta to rethink their investment strategies and, in many cases, pull back.

Specific Stock Recommendations and Future Outlook

Archyde: Investindo Sekuritas Pillarmas suggested AMRT shares as a potential investment chance. Do you agree with this assessment in the current climate?

Ari Satrio: While I can’t offer specific investment advice without knowing individual investor circumstances, AMRT, which operates in the consumer staples sector, could be considered relatively resilient during economic uncertainty. people need essential goods irrespective of market fluctuations. Though, thorough research and consultation with a personal financial advisor are always recommended before making any investment decisions. Investors should carefully weigh current stock market news and analysis when making informed choices.

Archyde: What advice would you give to investors trying to navigate this volatile market?

Ari Satrio: Stay informed, diversify your portfolio, and don’t panic. Volatility presents opportunities, but it’s crucial to have a long-term viewpoint and align your investments with your risk tolerance. Consider seeking guidance from a qualified financial advisor to help you make informed decisions.

Open Discussion: What are Your Thoughts?

Archyde: a question for our readers: What sectors do you believe will thrive in the face of ongoing trade tensions and potential economic slowdown? Share your insights in the comments below!