Indonesia Stock Exchange infrastructure ready to weather market turbulence from Iran-US tensions
Jakarta — PT Bursa Efek Indonesia (IDX) has assured that its market infrastructure and regulations are prepared to handle stock market volatility triggered by escalating tensions between the United States, Israel, and Iran.
Acting Chief Executive Officer Jeffrey Hendrik confirmed that volatility in the Composite Stock Price Index (IHSG) is attributable to global market turbulence, which is also affecting bourses worldwide.
“If we examine this, the external factors currently occurring are creating extremely high uncertainty. Not only in our market, but also in the global market,” he stated following the “Empowering Sharia Investment Journey with IDX Mobile Sharia” event at the IDX building in Jakarta on Monday.
Hendrik explained that the pattern of Indonesian stock market volatility on this occasion is similar to market turbulence that occurred in April 2024. He noted: “However, if we compare this with the phenomenon that occurred last year in April, when the US also issued policies that were not anticipated by the public at that time, it also resulted in a very sharp market decline.”
According to him, pressure on Indonesia’s stock market last year was considerably worse than current conditions.
He assured that Indonesia’s capital market infrastructure and regulations are prepared to withstand pressure resulting from economic and political turbulence.
On the closing of trading on Monday (9 March), the IHSG declined 248.32 points or 3.27 per cent to 7,337.37. The IHSG had fallen as much as 421.82 points or 5.56 per cent to 7,163.86 during trading at 09:12 WIB.
Meanwhile, regional Asian stock indices on Monday afternoon included: the Nikkei index declining 2,892.10 points or 5.20 per cent to 56,728.69; the Shanghai index declining 27.58 points or 0.67 per cent to 4,096.60; the Hang Seng index declining 348.82 points or 1.35 per cent to 25,408.46; and the Strait Times index declining 91.64 points or 1.89 per cent to 4,756.60.