IHSG Plunges 9.19% at Opening, Triggers Immediate Trading Halt

JAKARTA, investortrust.id – Indonesia's benchmark stock index has plummeted at market open on Tuesday, falling by more than 9% and triggering an automatic trading halt. The sharp decline follows a global market sell-off during the country’s extended religious holiday period and coincides with new emergency market rules introduced by regulators just before trading resumed.

The Indonesia Stock Exchange Composite Index, known as IHSG, opened down 598.56 points or 9.19% to 5,912.06. In accordance with revised trading rules issued by the Indonesia Stock Exchange (IDX) with support from the Financial Services Authority, or Otoritas Jasa Keuangan (OJK), the market entered a 30-minute trading halt immediately after the index dropped beyond the 8% threshold.

These new regulations, announced prior to Tuesday’s opening, also expand the threshold for the lower auto rejection limit, a mechanism that restricts excessive stock price declines. The limit has been adjusted to 15% for stocks listed on the main board, development board, and new economy board, as well as Exchange-Traded Funds (ETF) and Real Estate Investment Funds (DIRE), across all price ranges.

Under the updated trading halt protocol, IDX will enforce a 30-minute suspension if IHSG falls more than 8% in a single day. A second 30-minute halt will apply if the index drops more than 15%. If losses exceed 20%, a full-day trading suspension may be enacted, pending OJK’s approval.

“These lower auto rejection limit adjustments aim to contain market volatility and ensure investor protection,” said IDX Corporate Secretary Kautsar Primadi Nurahmad in a written statement on Tuesday, April 8, 2025. “The changes to trading halt procedures are intended to allow investors more room for liquidity and to make informed decisions based on available information.”

Nurahmad added that the new policy was developed based on global best practices and after receiving input from market participants.

The dramatic fall on Tuesday was driven by broad-based declines across all major sectors. The basic materials sector led the losses with a 10.07% drop, followed by technology at 10.38%, financials at 7.56%, energy at 7.53%, real estate at 6.88%, and consumer staples at 7.64%.

Blue-chip stocks suffered some of the deepest losses. Shares of PT Bank Central Asia Tbk, or BBCA, dropped 12.94% to Rp 7,400 (approximately $0.47), PT Barito Renewables Energy Tbk, or BREN, slid 12.91% to Rp 4,790 ($0.30), PT Bank Rakyat Indonesia Tbk, or BBRI, fell 14.57% to Rp 3,460 ($0.22), and PT Bank Mandiri Tbk, or BMRI, dropped 13.46% to Rp 4,500 ($0.29).

In contrast, a few stocks posted gains despite the broader market plunge. Shares of PT Bali Towerindo Sentra Tbk, or BALI, rose 4.96% to Rp 1,270 ($0.08), PT Asuransi Dayin Mitra Tbk, or ASDM, gained 2.98% to Rp 484 ($0.03), PT Pakuan Tbk, or UANG, rose 2.48% to Rp 330 ($0.02), and PT ITSEC Asia Tbk, or CYBR, increased 2.16%.

Before the downturn, the IHSG had closed higher in the final trading session ahead of the long Idulfitri holiday, rising 38.26 points or 0.59% to 6,510.62 on Thursday, March 27, 2025. Foreign investors recorded a net purchase of Rp 623.46 billion ($39.6 million), heavily buying into BBRI and BMRI shares.

Tuesday's collapse reflects the ripple effects of a global sell-off that unfolded while Indonesian markets were closed for the Nyepi and Idulfitri holidays. International markets saw steep declines triggered by a renewed tariff policy from former US President Donald Trump, who reintroduced reciprocal tariffs on imported goods.

The protectionist measures sent shockwaves through equity markets worldwide, with most major indexes falling by more than 5% over the past week alone.