Iran-Israel Conflict Heats Up, BEI Chief Urges Investors to Remain Rational

JAKARTA — The escalation of conflict between Iran and Israel triggering turmoil in global financial markets is also putting pressure on Indonesia’s capital market movements.

Amid rising geopolitical uncertainty, the stock exchange authorities have urged market participants to remain calm and rational in making investment decisions.

Acting Chief Executive (Pjs) of PT Indonesia Stock Exchange (BEI), Jeffrey Hendrik, stated that facing increased uncertainty due to geopolitical escalation in the Middle East, investors need to remain calm and rational in their decision-making.

This means that market volatility in such situations is generally driven by short-term sentiment and shifts in risk perception, so price fluctuations do not always reflect the true fundamental conditions of companies.

“Facing the increased uncertainty due to geopolitical escalation occurring at the global level, we urge investors to remain rational and always pay attention to fundamentals,” Jeffrey told reporters on Monday (2 March 2026).

According to him, investment strategy needs to be adjusted to each investor’s profile and risk tolerance.

“Adjust your investment strategy to match each investor’s risk tolerance,” he explained.

Since opening at 8,092.905, the Composite Index (IHSG) managed limited gains, reaching a high of 8,133.692. However, selling pressure resumed dominating the market and pushed the index down to a low of 8,039.508, before eventually moving in the 8,080s range.

Trading activity was quite brisk with volume reaching 29.556 billion shares and transaction value of Rp14.739 trillion. Trading frequency recorded 1,919,861 transactions. However, in terms of market breadth, selling pressure remained dominant with 651 stocks declining, 105 stocks advancing, and 57 stocks unchanged.

“The escalation of conflict between Iran, Israel, and the United States is not merely a political issue, but has entered the realm of global economic risk. The market responded immediately with a risk-off pattern. Global investors tend to exit risky assets and seek protection in safe-haven assets,” said Hendra when contacted by Kompas.com on Sunday (1 March 2026).