The Composite Stock Price Index (IHSG) opened stronger on Thursday morning, tracking positive global market sentiment after US President Donald Trump withdrew tariff threats against the European Union over the Greenland dispute. The IHSG rose 41.83 points or 0.46 percent to 9,052.16. This move eased volatility sparked by Trump's prior rhetoric.
On the opening of trading Thursday (January 22, 2026), the Indonesia Stock Exchange's Composite Stock Price Index rebounded after prior declines, driven by positive developments from the US. President Donald Trump announced the withdrawal of new tariff threats against European countries, following the achievement of a "framework agreement" between the US and Greenland regarding the Arctic region. In a Truth Social post, Trump stated, “We have formed a framework for future agreement regarding Greenland and the Arctic region. Based on this understanding, I will not impose the tariffs previously planned.”
Previously, Trump threatened 10 percent tariffs starting February 1, 2026, on exports from eight European countries, rising to 25 percent on June 1 if negotiations failed to grant US control over mineral-rich Greenland. He also threatened 200 percent tariffs on French wine and champagne, and criticized the UK, sparking global market volatility. Trump affirmed no military force would be used to seize Greenland.
Domestically, Bank Indonesia's Board of Governors meeting maintained the BI-Rate at 4.75 percent, Deposit Facility at 3.75 percent, and Lending Facility at 5.50 percent, to safeguard the rupiah exchange rate, which hit an all-time low on January 20.
US Wall Street markets strengthened on January 21, with the Dow Jones up 0.21 percent to 49,076.98, S&P 500 up 1.16 percent to 6,875.62, and Nasdaq up 1.36 percent to 25,326.58. European markets were mixed, while Asian exchanges mostly gained Thursday morning, such as the Nikkei 225 up 1.93 percent to 53,794.39.
Analyst Ratih Mustikoningsih from Ajaib Sekuritas predicted an IHSG rebound in the 8,950-9,070 range, while Fanny Suherman from BNI Sekuritas noted rebound potential with support at 8,950-9,000 and resistance at 9,035-9,080. The LQ45 index rose 0.53 percent to 876.05.
