IHSG weakens following Asian markets decline as investors shift to "safe haven" assets

Jakarta — Indonesia’s Composite Stock Price Index (IHSG) on the Indonesia Stock Exchange (BEI) closed lower on Monday afternoon, tracking weakness across Asian equity markets as market participants shifted their funds towards safe-haven assets, including gold and government bonds.

The IHSG closed down 218.65 points or 2.66 per cent to 8,016.83. Meanwhile, the blue-chip LQ45 index fell 21.87 points or 2.62 per cent to 812.49.

“Attacks by the United States and Israel against Iran have triggered open conflict, prompting global investors to avoid risky assets,” said Ratna Lim, Head of Research at Phintraco Securities, in her analysis in Jakarta on Monday.

Ratna also noted that rising crude oil prices have triggered concerns about potential inflation increases which, if prolonged, could lead to higher interest rates globally.

From domestic economic data, Indonesia’s inflation rose to 0.68 per cent month-on-month in February 2026, up from deflation of 0.15 per cent (mtm) in January 2026.

The inflation increase was primarily driven by a rise in the Food, Beverages and Tobacco expenditure group, which is the main commodity responsible for inflation spikes during Ramadan periods.

Year-on-year inflation accelerated to 4.76 per cent in February 2026, up from 3.55 per cent in January 2026, marking the highest level since March 2023. The increase was attributed to electricity tariff discounts implemented in early 2025 which had suppressed prices in the previous year.