Impact of the Iran–Israel War: IHSG Closes Nearly 5% Down, Rupiah Also Weaker

JAKARTA — The Jakarta Composite Index (IHSG) and the rupiah weakened at the close of Wednesday’s trade (4 March 2026), amid the escalating conflict involving Iran, Israel and the United States.

According to data from the Indonesia Stock Exchange (BEI), the IHSG closed down 362.70 points or 4.57% at 7,577.06.

During trade, the index moved in the red zone from the opening; it opened at 7,896.38 and briefly touched a high of 7,897.81 before continuing to slide to a daily low of 7,486.32.

Sell pressure was dominant for most of the day. Of the total stocks traded, 734 fell, far more than 54 that rose, while 33 remained unchanged.

Activity was very brisk. The volume traded reached 52.69 billion shares, with a turnover of around Rp29.31 trillion across 3.28 million trades.

According to him, regional indices such as Kospi, SET, Kosdaq, Nikkei, Taiwan TAIEX and ASX also posted sharp declines on Wednesday.

Indeed, Korea’s bourse briefly halted trading after its index fell more than 8%.

“Movement of the IHSG tracks the movements of other regional indices which also fell sharply, such as Kospi, SET, Kosdaq, Nikkei, Taiwan TAIEX, ASX. Korea’s market briefly halted trading after dropping more than 8%,” Irvan said when contacted by reporters.

This condition sparked market fears of a potential global energy crisis. The sentiment is also reflected in the rise in global oil prices in recent days.

“This is the impact of the escalation of geopolitical tensions in the Middle East, which continues to intensify, and Iran closing the Hormuz Strait, causing concerns about an energy crisis. This has already been reflected in world oil prices that are rising,” he added.

In the same vein, the rupiah also closed weaker on Wednesday afternoon trading. Based on Bloomberg data, the Rupiah weakened by 20 points or 0.12% to Rp 16,892 per US dollar.