IHSG Pressured to 7,039 Level as Fiscal Sentiment and Oil Price Surge Drive Decline

Jakarta - Indonesia’s composite stock index (IHSG) experienced significant pressure during Monday’s trading session (16 March 2026), even briefly dipping below the psychologically important 7,000 level.

According to data from the Indonesian Stock Exchange (BEI), the IHSG moved in negative territory from the start of trading. The index opened at 7,115.451 and touched an intraday high of 7,120.185. However, strong selling pressure pushed the IHSG down to an intraday low of 6,917.322 before recovering slightly to close at 7,039.406, representing a decline of 1.37 per cent.

“The IHSG closed weaker, down 97 points or approximately 1.37 per cent to the 7,039 level with transaction value reaching around Rp 8.1 trillion. During intraday trading, the index touched a low of 6,917 before recovering slightly towards the close,” said market analyst Hendra.

The movement contrasted with mixed performance across Asian markets. The Hang Seng Index actually strengthened approximately 1.14 per cent, the Nikkei 225 corrected around 0.73 per cent, and the Shanghai Composite Index weakened 0.71 per cent.

According to Hendra, this variation indicates that pressure on Indonesia’s stock market is not entirely driven by regional factors but is primarily influenced by domestic sentiment currently affecting investor decisions. Seasonal factors, whilst present, do not significantly dominate the overall direction of the IHSG, as Indonesia’s stock market structure is still dominated by large institutional investors, both domestic and foreign.

The more significant pressure on the IHSG currently stems from growing market concerns about the government’s fiscal condition, particularly regarding potential pressures on the state budget (APBN). This fiscal anxiety has become a major focal point driving the recent market weakness.