IHSG Closes Lower Today Amid US-Iran Geopolitical Tensions
The Jakarta Composite Index (IHSG) on the Indonesia Stock Exchange (BEI) closed lower on Wednesday (19/8), in line with weakness across Asian equity markets. The decline was triggered by rising geopolitical tensions between the United States and Iran.
“The majority of indices in the Asian region closed lower amid concerns over escalating geopolitical tensions,” said Phintraco Sekuritas Head of Research Ratna Lim in her research note in Jakarta on Wednesday.
The IHSG closed down 55.70 points, or 0.86 percent, at 6,394.13. Meanwhile, the LQ45 index of 45 leading stocks fell 3.56 points, or 0.56 percent, to 627.47.
Geopolitical conditions heated up after Iran reportedly considered attacking US assets in Bulgaria and Cyprus should war between the US and Iran resume. Meanwhile, the United Arab Emirates (UAE) halted all trade and financial transactions with Iran until further notice. The UAE had previously stated it detected missiles launched by Iran towards its territorial waters on Tuesday (18/8).
“The widening geopolitical tensions and their impact on oil prices are negative factors,” Ratna added.
Domestically, the Bank Indonesia (BI) Board of Governors Meeting on 18-19 August 2026 decided to hold the BI-Rate at 5.75 percent, in line with consensus expectations. The deposit facility rate was also kept at 4.75 percent, while the lending facility rate remained at 6.5 percent. Meanwhile, the weakening US dollar index pushed the rupiah up 0.12 percent to Rp17,862 per US dollar.
The IHSG opened lower and remained in negative territory through the first trading session. In the second session, the index stayed in the red until the close.
Based on the IDX-IC sectoral indices, two sectors gained, led by infrastructure, which rose 0.73 percent, followed by property, up 0.63 percent. Nine sectors declined, with basic materials falling the most at 1.14 percent, followed by primary consumer goods and industrials, which fell 0.86 percent and 0.75 percent respectively.
Stocks posting the largest gains included FUJI, TIFA, FPNI, WEGE, and TRUS. Stocks recording the largest declines were FAST, DWGL, TCPI, ASLI, and KJEN.