Key Takeaways:

• Indonesia's stock market saw a 9% drop, triggering a trading halt.
• The rupiah fell to 16,850 per US dollar, its lowest on record.
• The decline follows global market turmoil due to US tariff hikes on imports.

Jakarta's stock market opened for the first time since March 27 and immediately faced turmoil, with the main index falling 9.2% to 5,912 points early afternoon on April 8, resulting in a 30-minute trading suspension. The Reuters reported that the plunge was a reaction to global market volatility driven by rising tariffs from the United States, which included a planned 32% tax on Indonesian products.

The rupiah also dropped 1.8% to a record low, breaking past its level during the Asian Financial Crisis, now valued at 16,850 per dollar. The Indonesia Stock Exchange (IDX) noted that these measures were taken to “provide investors adequate time to adjust” after the extended break. IDX Chief Executive Iman Rachman stated that they want to strike a balance between preventing panic and ensuring traders have the opportunity to understand the market’s position.

Following the implementation of new trading rules to reflect the changing market dynamics, the IDX aims to cope with the ongoing fears that escalating US tariffs could have deleterious effects on the global economy. Analysts have noted a wider trend, as seen after the announcement of tariffs, leading to significant declines in major indices across the world including a 11.4% drop in the Nasdaq and a 10.5% setback for the S&P 500 in the United States, as reported by sources like The Jakarta Post.

As the day progressed, the market showed signs of slight recovery, suggesting some investor confidence might return. However, analysts remain cautious about the broader impacts on Indonesia's economy as global trade tensions escalate.