IHSG Rises 1.93%, Triggered by Trump's Statement on Iran Conflict
Indonesia’s Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange (BEI) closed higher on Wednesday afternoon, following Asian markets, triggered by a statement from US President Donald Trump that the US could end its military involvement in Iran within two to three weeks.
The IHSG closed up 136.22 points or 1.93% at 7,184.44. Meanwhile, the LQ45 index of 45 leading stocks rose 10.98 points or 1.53% to 726.79.
“This sentiment is underpinned by US President Donald Trump’s statement that the US could end its military involvement in Iran within two to three weeks,” said Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, Maximilianus Nico Demus, known as Nico, in his analysis in Jakarta on Wednesday (1/4/2026).
On the other hand, it was also reported that Iranian President Masoud Pezeshkian expressed willingness to end hostilities with several conditions, including international guarantees.
“Of course, this situation provides hope for easing tensions between the US and Iran,” Nico said.
Domestically, manufacturing index data remained relatively stagnant from the previous month but still indicated an expansion phase. S&P Global reported that Indonesia’s Manufacturing Purchasing Managers’ Index (PMI) fell to 50.1 in March 2026, from 53.8 in February 2026.
“This decline is inseparable from uncertainties due to geopolitical conflicts, supply chain disruptions, and rising raw material prices,” Nico said.
Meanwhile, the Central Statistics Agency (BPS) reported that the trade balance position in February recorded a surplus of $1.28 billion, which has a positive side in supporting Indonesia’s external economic resilience.
BPS also reported March inflation at 0.41% month-to-month (mtm) and 3.48% year-on-year (yoy), still within Bank Indonesia’s (BI) target range of 2.5% plus or minus 1%, reflecting controlled inflation momentum.
Opening higher, the IHSG stayed in positive territory until the close of the first trading session. In the second session, the IHSG remained in the green zone until the close.
Based on the IDX-IC Sectoral Index, ten sectors strengthened, led by the industrial sector which rose 5.57%, followed by the non-primary consumer goods sector and basic materials sector, each up 5.01% and 3.59%.
One sector weakened, namely the health sector, which fell 0.14%. The stocks with the largest gains were CHEM, ALKA, YPAS, KOCI, and BULL. The stocks with the largest declines were DATA, NZIA, WEHA, TALF, and ATAP.
Share trading frequency was recorded at 2,014,275 transactions with 31.54 billion shares traded worth Rp 16.47 trillion. 475 stocks rose, 209 fell, and 135 remained unchanged.
Regional Asian stock markets this afternoon included the Nikkei Index up 2,709.28 points or 5.31% to 53,773.00, the Shanghai Index up 56.69 points or 1.46% to 3,948.55, the Hang Seng Index up 505.89 points or 2.04% to 25,294.03, and the Straits Times Index up 97.09 points or 1.99% to 4,982.54.