IHSG Plummets in First Session, Pressured by Tech Stocks and APBN Deficit

The Jakarta Composite Index (IHSG) experienced a sharp decline during the first trading session on Friday (March 14, 2025). After opening down 1.22% or 81 points to 6,566.2, the index continued to slide and closed the session down 1.58% at 6,542.71.

Trading activity recorded a transaction value of Rp 4.12 trillion, with 7.7 billion shares changing hands in 641,000 transactions. Among traded stocks, 191 advanced, 380 declined, and 221 remained unchanged.

Most sectors were in the red zone, with only the energy sector managing a modest gain of 0.18%. Meanwhile, the technology sector suffered the deepest drop, plunging 7.34%, largely driven by the 20% decline in DCI Indonesia (DCII) shares to 180,925.

DCII Leads Decliners, Banking Stocks Add Pressure on IHSG

DCII shares had previously experienced a long rally, with daily gains consistently hitting auto reject upper (ARA). However, after surging over 300% year-to-date, the stock saw a steep correction.

The sharp drop in DCII contributed to a 59.71-point decline in the IHSG, making it the biggest drag on the index.

In addition to the technology sector, banking stocks also weighed on IHSG. Shares of Bank Central Asia (BBCA) fell 1.67% to 8,825, contributing a 9.76-point decline to the index.

Negative Sentiment from February 2025 APBN Deficit

Beyond stock market factors, IHSG was also pressured by the government's announcement of the state budget (APBN) deficit. As of the end of February 2025, the APBN recorded a deficit of Rp 31.2 trillion, equivalent to 0.13% of Gross Domestic Product (GDP).

This marks the first deficit in four years, in contrast to the previous three years, which consistently saw a surplus.

State revenue reached Rp 316.9 trillion by the end of February, with the largest contributors being tax revenue at Rp 187.8 trillion and customs duties at Rp 52.6 trillion. Meanwhile, government spending stood at Rp 348.1 trillion, or 9.6% of the APBN target, comprising central government spending of Rp 211.5 trillion and regional transfers of Rp 136.6 trillion.

The APBN deficit highlights Indonesia's strong dependence on commodity prices. Since the outbreak of the Russia-Ukraine war in 2022, Indonesia has benefited from surging commodity prices, which boosted state revenues. However, as commodity prices decline, state income faces pressure, leading to a widening budget deficit.