Jakarta \u2014 Indonesia\u2019s composite stock index (IHSG) experienced\nsignificant pressure during the trading week of 9-13 March 2026,\ndeclining 5.91 per cent amid heightened pressure from global and\ndomestic sentiment.<\/p>\n
Concurrent with the index\u2019s weakness, foreign investors recorded net\nselling of Rp 1.2 trillion in the regular market.<\/p>\n
Equity Analyst at PT Indo Premier Sekuritas (IPOT), Hari Rachmansyah,\nsaid the IHSG\u2019s weakness was primarily driven by escalating geopolitical\ntensions between the United States and Iran, which continue to\npersist.<\/p>\n
According to him, the conflict escalation triggered a surge in energy\ncommodity prices such as oil and coal, subsequently raising market\nconcerns about potential global inflation spikes and the possibility of\nprolonged tighter global monetary policy.<\/p>\n
The measure was taken to ensure the fiscal deficit remained below 3\nper cent of gross domestic product (GDP).<\/p>\n
\u201cThe combination of global uncertainty and fiscal policy caution is\ndriving investors to adopt a risk-off stance, thereby suppressing IHSG\nmovement throughout last week,\u201d said Hari Rachmansyah in a press\nstatement on Monday (16\/4\/2026).<\/p>\n
Hari noted that major Wall Street indices such as the S&P 500,\nDow Jones Industrial Average, and Nasdaq Composite remain potentially\nunder pressure.<\/p>\n
This is reflected by American equity index futures contracts, which\ncontinue to move weakly, thus indicating potential continued selling\npressure at the beginning of the week.<\/p>\n
This negative sentiment is primarily triggered by heightened\nuncertainty over global energy supplies following continued spikes in\nWest Texas Intermediate crude oil prices.<\/p>\n
Statements from Iran\u2019s new leadership making the closure of the\nstrait an instrument of pressure against opposing nations have further\nheightened market concerns about potential disruptions to global energy\nsupplies and their inflationary impact.<\/p>\n
\u201cNevertheless, recent developments show a different nuance after\nIran\u2019s Foreign Minister Abbas Araghchi stated that the Strait of Hormuz\nremains\u201dopen for vessels not originating from the United States, Israel,\nand their allies,\u201d Hari explained.<\/p>\n
He believes this geopolitical dynamic is prompting global investors\nto maintain a risk-off stance in the near term, hence US market\nvolatility is expected to remain elevated whilst geopolitical\nuncertainty and global energy supply stability show no signs of\nabating.<\/p>\n
Meanwhile, from the domestic perspective, market sentiment is\nestimated to be influenced by fiscal and monetary policy dynamics amid\nrising global energy commodity prices.<\/p>\n
Spikes in oil and coal prices have the potential to increase pressure\non government fiscal accounts, thereby driving the need for swift\nmeasures to keep the budget deficit under control.<\/p>\n
If the fiscal deficit continues to widen, several risks may emerge,\nranging from increased government debt financing requirements, pressure\non government bond yields, to potential rupiah depreciation stemming\nfrom heightened investor risk perception regarding fiscal stability.<\/p>\n
Additionally, a wider deficit may also narrow fiscal stimulus space\namid global economic uncertainty.<\/p>\n
On the monetary policy front, market participants will also monitor\nthe results of Bank Indonesia\u2019s Board of Governors Meeting in the coming\nweek.<\/p>\n
By consensus, the central bank is expected to maintain the BI-Rate\nbenchmark interest rate to preserve exchange rate stability and\ninflation control amid rising external pressures.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ihsg-falls-nearly-6-per-cent-in-a-week-analysts-reveal-the-root-cause-1773636841", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }