Monthly Market Summary January 2025
In US economy landscape, amid the uncertainty of the economic impact of the US tariff policy, the US Dollar Index remains flat. From China, we see an additional 10% tariff on China, and China raises tariffs on a number of US imports for goods worth under 20 billion US dollars. From Indonesian economy landscape, there is an instruction for government spending efficiency from the President of Indonesia in January 2025, which aims to reduce spending by 307 trillion Rupiah.
Meanwhile, the Indonesian Bond market Bonds market rebounded with Indonesia Bond Index + 0.58% MoM and Indonesia USD Government Bond Index +0.79% MoM. On the other hand, the Indonesian stock market has attractive potential in the financial, consumer staples and coal sectors. Some risks that need to be considered are the risk of currency wars and trade wars triggered by Trump's policies in the US, and the value of the US Dollar which remains strong.
