JCI Records Worst Drop Since Pandemic, Conglomerate Stocks Poised for Rebound

The Indonesian stock market experienced its worst performance since the onset of the Covid-19 pandemic in March 2020, with the Jakarta Composite Index (JCI) plunging 7.11%, triggering a trading halt. The sharp decline was driven by negative domestic sentiments, including deflation and weakening tax revenues.

On Tuesday (March 18, 2025), the JCI closed 3.84% lower at 6,223.39, marking its fourth consecutive daily loss and the worst drop since 2020. During intraday trading, the index even fell to 6,011.84, down 7.11%, before recovering slightly by the closing bell.

Rebound Opportunities Amid BI Rate Decision

Despite the downturn, the sharp correction opens up buying opportunities for investors in today’s trading session. Furthermore, JCI managed to trim losses by the closing session, raising the possibility of a technical rebound.

Another crucial factor to watch is Bank Indonesia’s (BI) interest rate decision, which will be announced today. The market anticipates that BI might adopt a more accommodative stance to boost liquidity and support the stock market.

The Bank Indonesia Board of Governors Meeting (RDG BI) on March 18-19, 2025, is a key event, with investors closely monitoring potential changes in the benchmark interest rate (BI Rate).

As of February 2025, BI has maintained the BI Rate at 5.75%, in line with projections from most financial institutions. Out of 17 institutions, the majority expect BI to keep rates steady, while only three institutions predict a cut to 5.50%.

Prajogo Pangestu’s Conglomerate Stocks Eye Rebound

Several conglomerate stocks linked to Prajogo Pangestu are expected to rebound after suffering massive sell-offs. Historically, when Prajogo’s stocks hit Auto Rejection Bawah (ARB), they tend to see a technical rebound the next trading day.

Four Prajogo Pangestu-linked stocks with potential rebound opportunities today include:

However, if JCI continues to decline today, the rebound potential may weaken. Short-term traders looking to capitalize on this opportunity are advised to limit losses with a 2-3% cut loss strategy, in case the expected rebound fails to materialize.