IHSG Crash 19 Maret 2025
Summary of Jakarta Stock Market Crash on March 18, 2025
On March 18, 2025, Indonesia’s stock market experienced a severe downturn as the Jakarta Composite Index (IHSG) plummeted 3.84% to close at 6,223 points—its first circuit breaker since March 2020, triggered by pandemic-era volatility. The index briefly hit an intraday low of 6,011 points, marking a "Black Swan Tuesday," a rare and unforeseen event causing sudden market chaos.
Key Factors Behind the Crash
- Selling Pressure: Four consecutive days of intense selling pressure, with technology stocks plunging by 9.77%.
- Corporate Issues: DCI Indonesia faced three straight auto-rejects below price (ARB), while Chandra Asri Pacific’s underwhelming financial results fueled investor anxiety.
- Downgrades by Global Firms: Goldman Sachs and Morgan Stanley reduced their ratings for Indonesian equities, raising fears of similar actions from agencies like S&P and Moody’s.
- Political Rumors: Unconfirmed reports about two economic ministers resigning exacerbated uncertainty.
- Investor Panic: Foreign investors exited en masse, while retail investors engaged in mass selling (panic selling), worsening the decline.
Market Dynamics
- The IHSG entered a "despair" phase, with investors grappling between cutting losses or waiting for recovery.
- Some large funds began accumulating undervalued stocks amid extreme pessimism, suggesting potential short-term bottoming out.
Broader Context & Reactions
- Historical parallels were drawn to crises in 1998, 2008, and 2020, emphasizing volatility as an inherent market reality.
- The Otoritas Jasa Keuangan (OJK) announced measures to stabilize the index. Analysts highlighted Indonesia’s strong long-term fundamentals but acknowledged short-term challenges from political instability and global risks.
Expert Insights & Lessons
- Analyst Teuku Riefky urged policymakers to reduce uncertainty and bolster investor confidence.
- Warren Buffett’s philosophy was cited: crises can present opportunities for rational investors amid market fear.
Outlook
While the IHSG faces further pressure if selling continues, recovery hinges on stabilizing investor sentiment and political clarity. The episode underscores volatility as a natural market cycle rather than an irreversible collapse.