JCI Edges Up as Fed Cuts Rates by 25 Bps but Signals Caution on Further Easing

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JAKARTA, Investortrust.id — The Jakarta Composite Index (JCI) closes slightly higher in the first trading session on Thursday, Oct 30, 2025, as investors weigh the Federal Reserve’s latest rate cut and cautious outlook from Chair Jerome Powell. The index edges up 6.64 points, or 0.08%, to 8,172, moving within a range of 8,150 to 8,231, with a total turnover of Rp 11.97 trillion.

The Fed on Wednesday trimmed its benchmark interest rate by 25 basis points to a range of 3.75%–4.00%, marking the second consecutive reduction. However, Powell dampened hopes for another cut in December, saying that further easing is “far from certain.” The U.S. central bank also announced plans to end its balance-sheet reduction program, known as quantitative tightening (QT), starting Dec 1 to maintain market liquidity.

Market participants in Jakarta responded cautiously. Gains in financial stocks, up 1.45%, along with technology shares at 1.24%, energy at 0.95%, infrastructure at 0.27%, and industry at 0.15% helped keep the composite index in positive territory. Meanwhile, basic materials, primary consumer, non-primary consumer, and property sectors retreated.

Two small-cap shares hit their daily upper limit (auto reject atas/ARA) amid strong retail trading activity: PT Sunson Textile Manufacture Tbk (SSTM) surged 25% to Rp 875, and PT Dwi Guna Laksana Tbk (DWGL) jumped 25% to Rp 370. Other top gainers included PT Coin Digital Indonesia Tbk (COIN), up 20.18% to Rp 2,740; PT Jaya Sukses Perkasa Tbk (JSPT), up 15.94% to Rp 4,000; and PT Optima Prima Metal Sinergi Tbk (OPMS), up 14.89% to Rp 108.

The day before, the JCI rose sharply by 73.59 points, or 0.91%, to 8,166 with trading value reaching Rp 17.09 trillion. Foreign investors turned net buyers, recording inflows of Rp 3.78 trillion, led by purchases of XL Axiata shares worth Rp 2.74 trillion, Bank Central Asia (BBCA) Rp 981.18 billion, and Bank Mandiri (BMRI) Rp 235.37 billion.

Yesterday’s rally was driven by strength in basic materials, which advanced 3.44%, followed by financials (1.56%), primary consumers (1.54%), health care (0.40%), and non-primary consumer stocks (0.35%). The industrial, property, technology, and infrastructure sectors saw modest declines.

Among the most actively traded gainers, PT Inovisi Infracom Tbk (INOV) jumped 34.02% to Rp 130, hitting its daily limit. PT Rohartindo Nusantara Luas Tbk (TOOL) rose 21.43% to Rp 68, PT Nusantara Pelabuhan Handal Tbk (PORT) climbed 19.05% to Rp 1,375, PT Satria Mega Kencana Tbk (STRK) advanced 15.31% to Rp 164, PT Bukit Uluwatu Villa Tbk (BUVA) added 15.49% to Rp 820, and PT Kresna Graha Investama Tbk (KSIX) strengthened 15.04% to Rp 306.

Meanwhile, Wall Street closed mixed overnight. Stocks initially rallied after the Fed’s decision but reversed gains following Powell’s warning that further cuts are not guaranteed. Major U.S. indices later recovered modestly as investors bet that easing measures will continue to support growth despite ongoing inflation pressures.

In a statement following the policy meeting, the Fed acknowledged that “indicators point to moderate economic growth,” while noting that inflation “remains somewhat elevated.” The central bank’s decision to halt QT, after reducing its balance sheet by about $2.3 trillion, suggests growing concern over tightening liquidity in short-term funding markets.

With the Fed pivoting toward a more cautious stance, investors in Indonesia are closely watching how Bank Indonesia will respond at its next monetary policy meeting, balancing external capital flows and domestic growth momentum.