JCI Closes Lower in First Week of March Amid Geopolitical Tensions - RRI.co.id
JCI Closes Lower in First Week of March Amid Geopolitical Tensions
06 Mar 2026 23:01 WIB
Voice of Indonesia
RRI.CO.ID, Jakarta - The Indonesian stock market closed Friday’s trading under significant pressure amid rising global geopolitical tensions. Investor concerns over the conflict involving the United States, Israel, and Iran prompted market players to reduce exposure to risky assets.
The Jakarta Composite Index (JCI) on the Indonesia Stock Exchange (IDX) fell 124.85 points, or 1.62 percent, to 7,585.68. The LQ45 index, which comprises blue-chip stocks, also weakened by 11.77 points, or 1.49 percent, to 776.04.
“Investors tend to be risk-off and defensive. Investors are avoiding high-risk instruments by liquidating big-cap stocks and rotating to safe-haven assets, such as gold and the US dollar,” said Head of Research at PT Korea Investment and Sekuritas Indonesia (KISI) Muhammad Wafi in Jakarta on Friday, March 6, 2026, as quoted by Antara.
Wafi explained that the escalating conflict in the Middle East and the rise in US Treasury yields triggered a shift in investor sentiment. These conditions were influenced by market expectations that the US Federal Reserve would keep interest rates high.
Global investors are also awaiting several key US economic data releases. Consumer price index (CPI) and non-farm payroll (NFP) data are seen as indicators of the Fed’s monetary policy direction.
Domestically, negative sentiment also stems from Fitch Ratings’ downgrade of Indonesia’s credit outlook to negative. This has weakened the rupiah and prompted foreign capital outflows from the domestic market.
Investors are also awaiting the release of Indonesia’s foreign exchange reserves and the possibility of a policy response from Bank Indonesia (BI), including a BI-Rate hike to maintain exchange rate stability. The market is also monitoring whether the pressure of net selling by foreign investors is beginning to ease.
Throughout trading, the JCI remained in the red zone from the opening until the close of the second session. Pressure was evenly distributed across all stock sectors, as measured by the IDX-IC sectoral index.
The industrial sector recorded the steepest decline of 3.67 percent, followed by the non-primary consumer goods sector at 3.54 percent and the energy sector at 2.80 percent.
Several stocks still recorded price increases, including SKBM, ALKA, TPIA, ICON, and EURO. Meanwhile, the stocks that experienced the biggest declines included KOTA, RODA, LAND, ENRG, and ENZO.
Trading activity recorded 1,946,837 transactions, totaling 34.18 billion shares worth IDR 17.77 trillion (USD 1.04 billion). A total of 168 stocks rose, 555 stocks fell, and 94 stocks remained stagnant. ***