TEMPO.CO, Jakarta - Indonesia Composite Index (IHSG) of the Indonesia Stock Exchange (IDX) closed lower on Monday afternoon amid escalating trade tensions between the United States and China. The IHSG closed 30.66 points or 0.37 percent lower at 8,227.20.
Meanwhile, the LQ45 index, which tracks the 45 leading stocks, fell 5.59 points, or 0.70%, to 788.02.
"Stock indices in Asia closed lower amidst growing concerns about a new trade war between the U.S. and China, the world's two largest economies, after U.S. President Donald Trump threatened to impose triple-digit tariffs on imports from China," said the Research Team of Phillip Sekuritas Indonesia in their study in Jakarta on Monday, October 13, 2025, as quoted from Antara.
President Trump's threat came after China tightened its control over rare earth exports. These minerals are essential to the production of various electronic, automotive, and semiconductor products. China dominates the global rare earth supply chain.
Despite making progress in trade negotiations earlier this year, the U.S. implemented a series of export controls targeting China in late September 2025, prompting the export restrictions.
The restrictions imposed by China, some of which will only take effect in November 2025, could have a major impact on the East Asian economy, such as Japan, South Korea, and Taiwan, which play a crucial role in the global technology and AI supply chain as well as the automotive industry.
President Trump appeared surprised by China's latest move or policy, so on Friday, October 10, 2025, he announced additional 100 percent tariffs on goods imported from China starting November 1, 2025, prompting the prospect of a trade war between the two countries.
The new tariffs would raise the total import duty on China's imports to about 130 percent, effectively amounting to a trade embargo, just below the 145 percent tariffs imposed on China at the peak of the trade war in early 2025.
On Sunday, October 12, 2025, the Chinese government stated that the U.S. must stop threatening it with higher trade tariffs and urged further negotiations to resolve unresolved trade issues.
The Chinese government also added that it would not hesitate to retaliate if the U.S. continued to provoke.
Although Trump threatened to impose 100 percent tariffs starting November 1, 2025, he sounded more conciliatory over the weekend, stating that everything would be fine and that the U.S. did not want to hurt China.
The IHSG opened lower and remained in negative territory until the close of the first stock trading session. In the second session, the IHSG remained in the red zone until the close of stock trading.
Based on the IDX-IC Sectoral Index, six sectors strengthened. The transportation and logistics sector led the way with a 2.74 percent increase. The energy and raw materials sectors followed with increases of 1.51 and 1.23 percent, respectively.
Meanwhile, five sectors weakened, with the financial sector experiencing the deepest decline at 1.52 percent, followed by the property and infrastructure sectors, each declining by 1.48 percent and 1.41 percent, respectively.
The stocks that experienced the most significant gains were TRJA, GZCO, MRAT, ASPI, and PORT. Meanwhile, the stocks that experienced the most significant declines were POLU, UANG, PPRI, HOPE, and JECC.
The frequency of stock trading was recorded at 2,854,878 transactions, with a total of 42.66 billion shares traded worth Rp27.43 trillion. 240 stocks rose, 438 fell, and 126 remained unchanged in value.
Regional stock exchanges in Asia this afternoon included the Nikkei index weakening by 491.64 points or 1.01 percent to 48,088.80, the Hang Seng index weakening by 400.84 points or 1.52 percent to 25,889.48, the Shanghai index weakening by 7.53 points or 0.19 percent to 3,889.50, and the Strait Times index weakening by 37.22 points or 0.84 percent to 4,389.84.
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