Indonesia’s Composite Stock Index Plunges Amidst Rising Geopolitical Tensions

Jakarta, Indonesia – The Indonesia Stock Exchange (IDX) Composite Index experienced a significant downturn on Monday, March 2, 2026, opening with a sharp correction. The index closed at 8,092.90, a decrease of 142.58 points, or 1.73% CNBC Indonesia.

Market Performance

As of the opening of trading, 556 shares declined, 56 shares rose, and 103 remained unchanged. The total transaction value reached IDR 708.27 billion, involving 976.34 million shares across 104,578 transactions. Within the first minute of trading, the JCI fell by more than 2%.

Drivers of the Decline

The primary catalyst for the decline is escalating conflict in the Middle East, specifically related to developments involving Iran. News surrounding the death of Iran’s Supreme Leader Ali Khamenei has heightened concerns about potential disruptions to global energy supplies and increased geopolitical instability Investing.com.

U.S. President Donald Trump’s statement regarding continued combat operations in Iran further exacerbated market anxieties, prompting investors to seek safe-haven assets.

Sector Performance

Nearly all trade sectors weakened, with the exception of the energy sector, which saw a slight increase. The raw goods sector, including gold mining issuers, experienced the smallest decline. The non-primary consumer and property sectors faced the most significant pressure.

Gold mining shares and oil and gas issuers helped to mitigate further declines in the JCI, even as large-cap stocks and shares of major conglomerates contributed to the downward trend.

Key Contributors to the Weakening

Indonesia’s largest banking issuers – BBRI, BMRI, and BBCA – were major contributors to the JCI’s decline, accounting for a weakening contribution of up to 35 index points. Shares owned by Prajogo Pangestu, including BREN, BRPT, and TPIA, also weighed heavily on the index.

Regional and Global Market Trends

The downturn in Indonesia mirrored a broader trend across Asia-Pacific exchanges. Oil prices surged, with West Texas Intermediate and Brent futures trading at US$72.52 and US$79.04 per barrel, respectively, an increase of over 8%. Gold contracts rose 2.3% as investors sought safe-haven assets.

In Japan, the Nikkei 225 index fell nearly 2% in opening trading, while the TOPIX fell 2.1%. However, shares of defense companies, such as Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and IHI Corporation, experienced gains. Australia’s S&P/ASX 200 index fell 0.38% in early trading. Hang Seng Index futures were lower than the previous closing price. The South Korean stock market was closed for a national holiday. U.S. Stock index futures also weakened, with the Dow Jones Industrial Average futures down approximately 1%, and the S&P 500 and Nasdaq-100 shedding about 1% and slightly more than 1%, respectively.

Looking Ahead

Market players face a combination of geopolitical sentiment and the release of key macroeconomic data in the first week of March 2026, which could influence global market direction. The situation in the Middle East is expected to trigger global uncertainty and potentially lead to capital flight from emerging markets, including Indonesia.