IHSG Trims Losses, First Session Before Eid Holiday Falls 1.37%
Jakarta — Indonesia’s Composite Index (IHSG) trimmed losses at the close of the first trading session on Monday, 16 March 2026. The index fell sharply at the start of trading, dropping as much as 3% and touching a low of 6,917.32 before recovering.
At the end of the first session, the IHSG closed at 7,039.41, down 97.8 points or 1.37%. A total of 17.62 billion shares changed hands, with transaction values reaching Rp 8.23 trillion across 1.01 million transactions. Market capitalisation fell to Rp 12.467 trillion.
According to Refinitiv data, the energy sector led declines, falling 3.41%, followed by property stocks down 3.37% and raw materials down 2.7%.
Major index-weighted stocks driving losses included Dian Swastatika Sentosa (DSSA), which fell 17.52 index points, Bumi Resources Minerals (BRMS) contributing a loss of 12.69 index points, and Amman Mineral Internasional (AMMN) down 8.8 index points.
Trading this week will be extremely limited, with only two sessions on Monday and Tuesday before the extended Eid holiday begins on Wednesday, 18 March through the following Tuesday.
Before the break, however, investors face multiple concerns regarding both domestic and global economic conditions. Global financial markets will encounter significant sentiment shifts and important economic data releases this week. The Middle East conflict and its impact on energy supplies will remain a key driver of global markets, alongside decisions from multiple major central banks on interest rates.
At least 11 central banks will hold monetary policy meetings this week, including the U.S. Federal Reserve and Bank Indonesia.
Bank Indonesia will hold its Monetary Policy Committee meetings on Monday 16 March and Tuesday 17 March. The bank is expected to maintain its benchmark interest rate at 4.75% to support the rupiah amid escalating tensions in Iran and rising oil prices. Bank Indonesia has held rates steady since September 2025.
The major focus this week falls on the Federal Reserve’s interest rate decision, scheduled for Tuesday–Wednesday U.S. time and announced Thursday early morning Indonesia time (19 March 2026). The Fed’s current rate stands in the 3.50%–3.75% range following three cuts last year. Markets now await signals on the next monetary policy direction, particularly amid inflation uncertainty 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, with FedWatch projections showing 99.2% probability of a hold.
Investors must also monitor Middle East developments. Israeli military spokesperson Effie Defrin stated that Israeli forces still have “thousands” of targets to strike in Iran, hours after operations expanded to cover western and central Iranian regions.
Iran’s Foreign Minister Abbas Araghchi stated that Tehran has not asked the United States for a ceasefire and does not see reason to engage in talks with America, in comments to CBS News.
U.S. President Donald Trump threatened additional strikes on Kharg Island, Iran’s primary oil export hub, over the weekend. He also stated he is not yet prepared to reach a deal to end the conflict that has effectively closed the Strait of Hormuz, a vital global energy trade route, disrupting global energy markets.
The Trump administration plans to announce as soon as this week that multiple nations have agreed to form a coalition to escort vessels through the Strait of Hormuz. However, discussions continue on whether operations will commence before or after the conflict ends, according to Wall Street Journal reporting citing unnamed U.S. officials. The White House has not provided official comment.
Trump, who stated Friday that the U.S. Navy would soon begin escorting oil tankers, claimed Iran wishes to negotiate. However, this assertion was denied by Iran’s Foreign Minister Abbas Araghchi on Sunday.