Inp.polri.go.id - Jakarta. Indonesia Stock Exchange (IDX) CEO Iman Rachman attributed the Jakarta Composite Index (IHSG) decline to global and domestic factors.

He highlighted capital outflows from emerging markets due to rising U.S. trade tensions. 

“Mari Elka Pangestu noted that 70% of funds are shifting to quality in the U.S. Foreign capital is now flowing there,” he said on Friday (28/2/2025), as quoted by antaranews.com.

The U.S.Federal Reserve’s restrictive monetary stance also dampened investor sentiment. 

“The Fed is expected to cut rates only once this year. Higher U.S. interest rates make equities less attractive,” he explained.

Domestically, Morgan Stanley Capital International’s (MSCI) downgrade has weighed on the market. In Asia, the Bank of Korea’s rate cut from 3% to 2.75% influenced regional sentiment.

“We must recognize that 40% of market participants are foreign investors, while nearly 40% of domestic investors are retail,” Iman noted.

(mg/inp/pr/nm)