IHSG Opens Weak, Down 0.34%

The Jakarta Composite Index (IHSG) opened weaker on Thursday, declining 0.34% as market participants continued to assess global sentiment and awaited further economic catalysts. The IHSG opened at 5,853.62, down 19.75 points from the previous close. A total of 180 stocks advanced, 215 declined, and 569 remained unchanged, indicating selling pressure dominated the opening session. Market capitalisation on the Indonesia Stock Exchange was recorded at Rp10,246 trillion. Financial markets in Indonesia are expected to experience high volatility, with external factors such as the escalating war and new global economic projections weighing on the IHSG and the rupiah. The US military launched further strikes against Iran on Wednesday, aiming to weaken Tehran’s ability to threaten shipping in the Strait of Hormuz, a route that handles about a fifth of the world’s oil supply before the conflict. US Central Command stated the strikes were in retaliation for attacks on three commercial vessels in the strait the previous day. President Donald Trump also declared a temporary memorandum of understanding with Iran to end the conflict had ‘expired’ and threatened a tougher response to any further ship attacks. A US official indicated the latest wave of strikes would be larger than the previous day’s operation. The strikes hit several cities along Iran’s southern coast, including the major port of Bandar Abbas, causing power outages and damage to maritime facilities. In response, Iranian state media reported Tehran is preparing a major retaliatory strike against US military bases in the region. Iran is also considering other measures, including withdrawing from the Nuclear Non-Proliferation Treaty, altering its nuclear doctrine, and closing the strategic Bab el-Mandeb strait. The renewed escalation has dashed hopes for a lasting peace between Washington and Tehran. Rising Middle East tensions also pushed global oil prices up by more than US$1 per barrel, with Brent crude trading around US$79.28 per barrel. Meanwhile, the International Monetary Fund has again cut its global economic growth forecast for 2026 to 3%, down from 3.5% in 2025. The revision reflects the prolonged impact of the Middle East conflict, surging energy prices, and heightened geopolitical uncertainty. In its latest World Economic Outlook report, the IMF cited the conflict between the US, Israel, and Iran as one of the greatest risks to the global economy. However, the IMF noted that the negative impact could be partially offset by rapid investment in artificial intelligence and other technologies that continue to support economic activity. The IMF expects global inflation to rise to 4.7% in 2026, up from 4.1% in 2025, driven by sharp increases in commodity prices, particularly energy. The fund assumes an average oil price of around US$89 per barrel, with current energy prices approximately 25% higher than before the conflict erupted in late February. For Indonesia, the IMF maintained its growth projection at 5.0% for 2026 and 5.1% for 2027.