IHSG Weakens as Investors Shift to Safe Haven Assets
Indonesia’s Composite Stock Index (IHSG) on the Indonesia Stock Exchange (IDX) closed weaker on Monday afternoon, following the weakness in regional Asian stock markets, as market participants shifted their funds to safe haven assets, such as gold and government bonds.
The IHSG closed weaker by 218.65 points or 2.66 per cent to position 8,016.83. Meanwhile, the 45 leading shares or LQ45 index fell 21.87 points or 2.62 per cent to position 812.49.
“The attacks by the United States (US) and Israel against Iran have triggered open conflict and made global investors tend to avoid risky assets,” said Ratna Lim, Head of Research at Phintraco Securities, in her analysis in Jakarta, Monday, 2 March 2026.
Additionally, Ratna said that rising crude oil prices also triggered concerns about the potential increase in inflation which, if prolonged, could drive the potential increase in interest rates at the global level.
“However, the majority of stocks related to energy and gold mining recorded strengthening, thus restraining further weakening of the IHSG,” said Ratna.
From domestic economic data, Indonesia’s inflation data increased to 0.68 per cent month-on-month (mtm) in February 2026, from the previous deflation of 0.15 per cent (mtm) in January 2026.
The increase in inflation was primarily contributed by the increase in the Food, Beverage and Tobacco Expenditure Group, which became the main commodity contributing to inflation at every Ramadan period.
Annual inflation accelerated to 4.76 per cent year-on-year (yoy) in February 2026 from the previous 3.55 per cent (yoy) in January 2026, and is the highest level since March 2023. The increase was caused by electricity tariff discounts at the beginning of 2025 that had suppressed prices in the previous year.
Meanwhile, the trade balance surplus declined to US$0.95 billion in January 2026 from the previous US$3.49 billion in January 2025, due to an increase in imports of 18.21 per cent (yoy) and exports growing only 3.39 per cent (yoy).
Subsequently, Indonesia’s Manufacturing PMI still grew at level 53.8 in February 2026, from the previous level 52.6 in January 2026, mainly due to increased domestic demand.
Opening weaker, the IHSG remained in negative territory until the close of the first trading session. In the second session, the IHSG remained in the red zone until the close of trading.
Based on the IDX-IC Sectoral Index, one sector strengthened, namely the energy sector which strengthened by 1.70 per cent.
Meanwhile, 10 sectors corrected with the non-primary consumer goods sector declining the deepest by 7.41 per cent, followed by the industrial sector and the infrastructure sector which fell by 5.38 per cent and 4.34 per cent respectively.
The stocks that experienced the greatest strengthening were OILS, ENRG, RUIS, APEX, and ELSA. Meanwhile, the stocks that experienced the greatest price weakness were TRUE, BUVA, BNBR, BELL, and MINA.
The frequency of stock trading was recorded at 3,652,154 transactions with a total of 56.60 billion shares traded valued at Rp29.83 trillion. A total of 108 stocks rose, 671 stocks fell, and 41 were unchanged in value.
Regional Asian stock markets this morning included the Nikkei index weakening 793.10 points or 1.35 per cent to 58,057.19, the Shanghai index strengthening 19.70 or 0.47 per cent to 4,182.58, the Hang Seng index weakening 570.68 points or 2.14 per cent to 26,059.84, the Kuala Lumpur index weakening 16.40 points or 0.96 per cent to 1,700.21, and the Straits Times index weakening 104.20 points or 2.09 per cent to 4,890.85.