Indonesian Stocks Plunge as Global Tensions Escalate

Jakarta, Indonesia – Indonesian stocks experienced a significant downturn on Wednesday, March 4, 2026, continuing a trend of weakening performance. The Jakarta Composite Index (IHSG) opened lower and continued to fall throughout the morning session, mirroring declines in other Asia-Pacific markets amid escalating geopolitical tensions in the Middle East and concerns over global energy supplies.

Market Performance

As of 10:02 WIB (Western Indonesian Time), the IHSG had plummeted 3.43% to 7,667, with the Rupiah also weakening by 0.30% to Rp 16,900 per US dollar. The decline follows a 0.96% fall on Tuesday and a 2.65% drop two days prior. Trading volume was high, with 561 shares declining, 105 rising, and 168 remaining unchanged. The total transaction value reached IDR 5.97 trillion, involving 11.07 billion shares in 693,762 transactions.

Key Declining Stocks

Several key stocks contributed to the IHSG’s decline:

• Barito Renewables Energy (BREN) -15.73 points
• Amman Mineral International (AMMN) -10.62 points
• Telkom Indonesia (TLKM) -10.52 points
• Bank Mandiri (BMRI) -10.09 points
• Bumi Resources Minerals (BRMS) -9.70 points
• Chandra Asri Pacific (TPIA) -8.29 points
• Bank Central Asia (BBCA) -7.10 points
• Bank Rakyat Indonesia (BBRI) -6.29 points
• Merdeka Gold Resources (MDKA) -5.96 points
• VKTR Mobility Technology (VKTR) -5.61 points

Shares of companies owned by major Indonesian conglomerates, including Prajogo Pangestu, Hapsoro, Aguan, Bakrie, Hary Tanoe, and Garibaldi ‘Boy’ Thohir, also experienced significant losses.

Sector Performance

All trade sectors were in the red, with the infrastructure and raw goods sectors experiencing the steepest declines. The health and energy sectors showed the most resilience, but still registered corrections. Gold mining issuers and conglomerate-owned shares were significant drags on the index.

Regulatory Updates and MSCI Considerations

The Indonesian financial market is also reacting to developments related to MSCI (Morgan Stanley Capital International) index requirements. The Financial Services Authority (OJK) has announced updates regarding shareholder disclosure requirements, including data on ownership exceeding 1%. As of February 27, 2026, the Indonesia Central Securities Depository (KSEI) disclosed investor share ownership with portions above 1% for the first time. The OJK is also working to reclassify investors from 9 to 27 types and increase the minimum free float from 7.5% to 15%.

Global Market Context

The decline in Indonesian stocks is part of a broader trend in Asia-Pacific markets. South Korea’s Kospi index fell 7.24% on Wednesday, its largest decline in 19 months, due to escalating conflict in the Middle East. Australia’s S&P/ASX 200 index was down 1.81%, Japan’s Nikkei 225 lost 1.59%, and Hong Kong’s Hang Seng index futures were lower.

Oil Prices and Geopolitical Risks

Oil prices continued to rise, with US crude futures increasing 0.87% to $75.21 and Brent crude rising 5.43% to $81.96 a barrel, driven by concerns over potential disruptions to supply through the Strait of Hormuz. Reports indicated Iran seeking to close the Strait, prompting a statement from US President Donald Trump offering US Navy escort for tankers if necessary.

US Market Performance

US stock markets also experienced volatility on Tuesday, with the Dow Jones Industrial Average losing 403.51 points (0.83%) to close at 48,501.27. The S&P 500 fell 0.94% to 6,816.63, and the Nasdaq Composite declined 1.02% to 22,516.69.