Indonesian Political, Business & Finance News

Indonesia Stock Exchange Prepared to Handle Iran-Israel Conflict Fallout

| Source: TEMPO_ID_BISNIS Translated from Indonesian | Finance

PT Indonesia Stock Exchange (BEI) has confirmed that its infrastructure systems and exchange regulations are prepared to manage stock market volatility resulting from the Iran versus Israel-United States conflict. Acting Chief Director of BEI Jeffrey Hendrik stated that volatility in the Composite Stock Price Index (IHSG) stems from global market upheaval affecting international stock exchanges.

“If we observe, external factors currently occurring are creating extremely high uncertainty. Not only in our market, but also in the global market,” said Jeffrey, as quoted by Antara on Monday, 9 March 2026.

Jeffrey explained that Indonesia’s current stock market volatility follows a pattern similar to the pressures experienced in April 2025. He recalled that the April 2025 turmoil was caused by United States President Donald Trump’s reciprocal tariff policy, which exerted significant pressure on stock markets, particularly emerging markets including Indonesia.

“However, when we compare with the phenomenon that occurred last year in April, where the US also issued an unexpected policy that resulted in a very sharp market decline, it also caused much greater pressure,” he stated.

According to him, the pressure on Indonesia’s stock market last year was considerably greater compared to current conditions. He assured that Indonesia’s capital market infrastructure and regulations are prepared to handle the pressures arising from economic and political volatility.

“What we experienced at that time was worse in terms of market context than today. Therefore, our exchange’s infrastructure systems and regulations are already prepared to handle the current market dynamics,” said Jeffrey.

At the close of trading on Monday, 9 March 2026, the IHSG closed weaker by 248.32 points or 3.27 per cent at 7,337.37. The IHSG fell as far as 421.82 points or 5.56 per cent to 7,163.86 level during Monday morning trading.

Meanwhile, regional Asian stock exchanges including the Nikkei Index weakened by 2,892.10 points (5.20 per cent) to 56,728.69; the Shanghai Index weakened by 27.58 points (0.67 per cent) to 4,096.60. The Hang Seng Index weakened by 348.82 points (1.35 per cent) to 25,408.46; the Straits Times Index weakened by 91.64 points (1.89 per cent) to 4,756.60.

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