Monthly Market Summary May 2025
From a global economic perspective, market concerns over the impact of U.S. trade tariffs have eased, especially after the United States and China announced an agreement to reduce reciprocal tariffs for 90 days. As part of the agreement, the U.S. import tariffs on Chinese goods dropped from 145% to 30%, while China lowered its tariffs on U.S. products from 125% to 10%, following a meeting in Geneva, Switzerland.
On the domestic front, Indonesia launched an economic stimulus package worth IDR 24.4 trillion to boost GDP growth. The package includes cash and basic goods assistance, wage subsidies, discounts on public transportation fares, toll road fee reductions, and discounts on work accident insurance premiums.
In May 2025, prices of Indonesian government bonds denominated in Rupiah rose, with the 10-year bond yield falling by 3 basis points to 6.84%. Meanwhile, prices of Indonesian government bonds denominated in USD remained flat, with the 10-year yield steady at 5.28%.
As for equities, the earlier-than-expected de-escalation of the U.S.–China tariff war supported a recovery in North Asian stock markets. In May 2025, the Jakarta Composite Index (IHSG) and MSCI Indonesia rose by 6.04% and 7.09%, respectively, led by large-cap stocks such as BBRI, BBCA, BMRI, and Barito Group stocks including TPIA, BREN, and CUAN. On the other hand, stocks like GOTO, DCII, AMMN, and PANI weighed on the market’s performance. Foreign investors recorded a net purchase of IDR 6.4 trillion in the Indonesian equity market.
