IHSG Weakens on 2 March 2026 as Investors Shift to Gold and Bonds

A brutal and deadly attack by Israel and the United States on Iran on Saturday (28 February) sent shockwaves through global markets.

The Indonesian Composite Index (IHSG) closed weaker on 2 March 2026 across Asian markets at the Indonesia Stock Exchange (BEI). The IHSG fell 218.65 points or 2.66% to 8,016.83, whilst the LQ45 index of 45 blue-chip shares dropped 21.87 points or 2.62% to 812.49.

Market participants redirected their funds towards safe-haven assets, notably gold and government bonds.

Ratna Lim, head of research at Phintraco Securities, stated that the US and Israeli strikes on Iran prompted global investors to avoid risky assets. She also highlighted rising crude oil prices resulting from Iran’s closure of the Strait of Hormuz, which triggered concerns about inflation and higher global interest rates.

“However, most energy and gold mining stocks posted gains,” Ratna said in Jakarta on Monday (2 March), which helped prevent further declines in the IHSG.

Indonesia’s inflation increased to 0.68% month-on-month in February 2026, up from deflation of 0.15% month-on-month in January 2026, according to data from Indonesian economists. Several factors contributed to February inflation, particularly the Food, Beverages and Tobacco expenditure group ahead of Ramadan.

The IHSG opened weaker and remained in negative territory throughout the first trading session. In the second session, the index stayed in the red until close.

However, sectoral data showed the energy sector rose 1.70%. Stocks with the largest gains included OILS, ENRG, RUIS, APEX and ELSA, whilst those with the steepest declines were TRUE, BUVA, BNBR, BELL and MINA.

Jeffrey Hendrik, acting director general of the Indonesia Stock Exchange (BEI), urged investors to remain rational amid Middle Eastern tensions.

The IHSG experienced a correction of 0.44% over the past week, between 23-27 February 2026.

Oki Ramadhana, director general of PT Mandiri Securities, expressed optimism regarding a proposal submitted by the Indonesia Stock Exchange (BEI) to global index provider MSCI.

Earlier on 23 February 2026, the IHSG surged 1.50% to 8,396.08.