Geopolitical Thaw Drives Indonesian Rally as US-Iran Ceasefire Hits Oil

The Indonesian stock market broke a three-day losing streak on Wednesday, with the Jakarta Composite Index (JCI) rallying 308.18 points, or 4.42%, to close at 7,279.21. The surge reflects a broader shift in global sentiment following news of a diplomatic breakthrough between Washington and Tehran. The rally was sparked by a two-week ceasefire agreement. President Donald Trump stated that the U.S. would suspend attacks on Iran provided that the Strait of Hormuz is completely and immediately reopened. Iranian Foreign Minister Abbas Araghchi confirmed that the strategic waterway would be reopened if attacks ceased. In Jakarta, the gains were widespread across multiple sectors. Financials led the charge, with Bank Negara Indonesia soaring 7.69% and Bank Central Asia climbing 3.85%. Resource companies also saw significant jumps, including Vale Indonesia (+8.30%) and Timah (+8.57%), as investors pivoted toward risk-on assets. The ceasefire sent shockwaves through the energy sector as supply-disruption risks dissipated. West Texas Intermediate (WTI) crude for May delivery plummeted 16.07%, dropping $18.15 to settle at $94.80 per barrel. This positive momentum mirrored a strong session on Wall Street, where the Dow Jones Industrial Average surged 2.85% to 47,909.92 and the S&P 500 jumped 2.51% to 6,782.81. Market participants expect the JCI to maintain its upward trajectory into Thursday, though gains may be more measured than those seen in Western markets.