IHSG Plummets Over 3% to 6,917 Level

Indonesia’s Composite Index (IHSG) collapsed at the opening of the first trading session on Monday, 16 March 2026. Within less than fifteen minutes of market opening, the IHSG dropped over 3% and touched its lowest level at 6,917.32.

A total of 77 shares advanced, 564 declined, and 84 remained unchanged. Trading in the first session was sparse, with a transaction value of Rp2.64 trillion involving 7.01 billion shares across 335,764 transactions. Market capitalisation retreated to Rp12.36 trillion.

The IHSG remains on a bearish trajectory. The benchmark index for the Indonesian exchange has only managed to strengthen for two days out of the last 11 trading days and has collapsed nearly 20% since the start of the year.

All trading sectors weakened, with the deepest corrections recorded in infrastructure, energy and raw materials sectors. The sectors with the smallest declines were healthcare and financials.

Conglomerate and blue-chip shares uniformly burdened IHSG performance today. Dian Swastatika Sentosa (DSSA), which collapsed today, was recorded as the primary drag on IHSG performance with a contribution of 18.24 index points to the decline.

Shares from the Barito Prajogo Pangestu Group also weakened sharply, with BREN shares ranking among the IHSG laggards this morning.

Other shares that weighed on IHSG performance included BRMS, BBRI, TLKM, BBCA and BMRI.

Market trading this week will be exceptionally brief, lasting just two days—Monday and Tuesday—before the market enters an extended holiday and joint leave for Eid al-Fitr from Wednesday, 18 March 2026 to the following Tuesday.

Unfortunately, before the extended break, investors are overshadowed by numerous concerns about domestic and global conditions.

Global financial markets will also face numerous sentiments and important data releases this week. Conflict in the Middle East and its impact on energy supplies will continue to be the primary factor driving global markets. This issue will also play an important role in a series of interest rate decisions from various major world central banks.

The main focus of this week is central banks’ interest rate decisions. At least 11 central banks will hold interest rate decision meetings this week, including the US Federal Reserve and Bank Indonesia.

Because the Indonesian market is closed amid significant global data releases, investors need to carefully consider what actions they should take during these two trading days.

Bank Indonesia will hold its Board of Governors Meeting (RDG) on Monday and Tuesday this week (16–17 March 2026) and will hold a press conference on Tuesday.

Bank Indonesia is expected to maintain its benchmark interest rate at 4.75% this month to safeguard the rupiah’s exchange rate amid escalating Iran conflict and rising oil prices.

Bank Indonesia has held its benchmark interest rate steady since September 2025.

From the United States, investors are awaiting the release of the February Producer Price Index (PPI) on Wednesday this week (19 March 2026).

Previously in January 2026, US producer prices rose 0.5% month-on-month, higher than market expectations of 0.3%. The increase was primarily driven by the services sector, whilst goods prices declined due to falling petrol prices.

The main focus of this week is the Federal Reserve’s interest rate decision, scheduled for Tuesday-Wednesday US time and to be announced Thursday early morning Indonesian time (19 March 2026).

Currently, the Federal Reserve’s interest rate stands in the range of 3.5%–3.75% following three rate cuts last year. The market is now awaiting signals regarding the next monetary policy direction, particularly amid uncertainty over inflation and global economic conditions.

Most analysts expect the Federal Reserve to maintain interest rates in the 3.50%–3.75% range at the March FOMC meeting. Projections on FedWatch even show 99.2% odds of rates being held steady.

Investors must also monitor developments in Middle Eastern conflict. Israeli military spokesperson Effie Defrin stated that Israel’s military still has “thousands” of targets to strike in Iran, just hours after attacks expanded to include western and central Iranian regions.

Iranian Foreign Minister Abbas Araghchi stated that Tehran had not asked the United States to implement a ceasefire.

In an interview with CBS News, the BBC’s media partner in the US, Araghchi also said Iran saw no reason to talk with America.

US President Donald Trump threatened over the weekend that he would launch additional strikes against Kharg Island, Iran’s main crude oil export hub. He also stated he was not ready to reach a deal to end the war, which has closed the Strait of Hormuz, a vital global energy trading route, and has shaken global energy markets.

The Trump administration plans to announce as early as this week that several countries have agreed to form a coalition to escort vessels through the Strait of Hormuz. However, they are still discussing whether the operation will begin before or after the conflict ends, according to Wall Street Journal reporting citing unnamed US officials. The White House has not provided an official comment.

Trump, who on Friday said the US Navy would soon begin escorting oil tankers, stated that Iran wants to negotiate. However, this claim was refuted by Iranian Foreign Minister Abbas Araghchi on Sunday.