IHSG Plummets 5.35 Per Cent to 7,179.69

Indonesia’s Composite Stock Index (IHSG) on the Indonesia Stock Exchange (BEI) opened sharply lower on Monday, 9 March 2026, declining 5.35 per cent to 7,179.69. Meanwhile, the LQ45 index of 45 leading shares fell 22.31 points, or 2.87 per cent, to 753.74.

The IHSG’s decline mirrored weakness across Asian stock markets resulting from soaring global oil prices. Kiwoom Research cautioned investors that volatility would remain elevated throughout the week, with risks of continued consolidation. “Adopt a wait-and-see approach whilst monitoring global sentiment,” advised Liza Camelia Suryanata, Head of Research at Kiwoom Sekuritas Indonesia, in her assessment in Jakarta on Monday.

The escalating conflict between the United States and Israel with Iran has spread across multiple regions and heightened concerns about disruptions to global energy supplies. Investors have shifted towards safe-haven assets and liquidity, strengthening the US dollar whilst equities and risk assets face downward pressure.

Uncertainty intensified following Iran’s appointment of Mojtaba Khamenei, son of the deceased supreme leader Ayatollah Ali Khamenei, as the new Supreme Leader. The appointment of this figure, known for his ties to hardline factions, reinforces perceptions that Iran is unlikely to soon moderate its stance in the conflict with the US and Israel, thereby elevating risks of geopolitical escalation in the Middle East.

Oil prices surged sharply due to conflict escalation and shipping disruptions in the Strait of Hormuz. By 07:50 Western Indonesia Time, WTI Crude Oil prices had risen 20.81 per cent to $109.82 per barrel, whilst Brent Oil climbed 18.17 per cent to $109.53 per barrel.

“Rising energy costs heighten global inflation risks and can suppress economic growth through increased fuel prices and production costs. Several Middle Eastern energy producers have begun reducing output owing to supply chain disruptions,” stated Liza.