BEI: Investors Must Remain Rational Amid Middle East Conflict
A brutal and lethal assault by Israel and the United States against Iran on Saturday (28 February) has shocked the world. The Acting Director General of PT Bursa Efek Indonesia (BEI), Jeffrey Hendrik, has reminded investors to remain rational and prioritise fundamental analysis in making investment decisions amid escalating Middle East conflict. The warning follows an escalation in tensions between Iran versus the US-Israel alliance, which has also triggered weakness in stock markets across Asia, including Indonesia, during Monday (2 March) trading.
“In facing increased uncertainty due to geopolitical escalation occurring at the global level, we urge investors to remain rational and always pay attention to fundamentals,” said Jeffrey in Jakarta on Monday. He also emphasised the importance for investors to adjust their investment strategies to match their individual risk tolerance.
“Adjust investment strategies with each investor’s risk tolerance,” he stated.
During Monday morning trading, the Indonesian Composite Index (IHSG) opened weaker by 23.95 points or 0.29% to 8,211.31. Similar declines occurred on stock exchanges across Asian nations. The Kuwait Stock Exchange even suspended trading, whilst the United Arab Emirates closed its stock market on 2-3 March.
Tensions in the Middle East escalated after the United States and Israel launched a major air offensive against several strategic targets in Iran, including military facilities and locations allegedly related to Tehran’s missile and nuclear programme in an operation called Operation Epic Fury. In retaliation, Iran launched ballistic missile attacks against several countries hosting US forces or allied bases in the Gulf region, including Bahrain, Qatar, Kuwait, Saudi Arabia, Jordan, and the United Arab Emirates.
This escalation has also raised concerns about the stability of the strategic Strait of Hormuz shipping route, which is a vital pathway for approximately 20-25 per cent of the world’s daily crude oil and liquefied natural gas supply. Disruption to the Strait of Hormuz could shake global energy markets, affecting oil prices, energy supply chains, and significantly increasing shipping insurance costs.
The Indonesian Composite Index (IHSG) experienced a correction of 0.44 per cent over the past week during the period 23-27 February 2026. The Director General of PT Mandiri Sekuritas, Oki Ramadhana, expressed optimism regarding a proposal submitted by PT Bursa Efek Indonesia (BEI) to global index provider MSCI. Investment trends in 2026 are projected to increasingly focus on strengthening portfolios capable of weathering market volatility.