Market Welcomes Prabowo's Measures to Mitigate War Impact, IHSG Rises 2%!
Jakarta, CNBC Indonesia — The Composite Stock Price Index (IHSG) surged strongly this morning, Wednesday (1 April 2026). Investors welcomed a series of policies to anticipate the spillover effects of the conflict in the Middle East from Indonesian President Prabowo Subianto.
By 09:16 WIB, the IHSG had risen almost 2% to 7,186.66. A total of 489 stocks rose, 140 fell, and 329 remained unchanged.
The transaction value reached Rp 2.39 trillion, involving 4.15 billion shares in 266,600 transactions. Market capitalisation also climbed to 12,625 trillion.
As is known, the government officially announced several policies to anticipate the spillover effects of the Middle East conflict, which is affecting global energy price volatility.
Among them are the implementation of work-from-home (WFH) once a week for civil servants (ASN), namely on Fridays, fuel savings, budget refocusing, and changes to the Free Nutritious Meals (MBG) programme.
Coordinating Minister for the Economy Airlangga Hartarto stated that these eight policy points are mitigation steps against global dynamics as well as momentum for transformation and change.
“This policy programme is called the 8 Pillars of National Work Culture Transformation Policy and Government Energy Policy,” said Airlangga during a live press conference from Seoul on Tuesday (30 March 2026).
The programme will take effect from 1 April 2026. Here are some of the programmes:
Citing Refinitiv, banking stocks were the main drivers of the index. Bank Rakyat Indonesia (BBRI) contributed 12.58 points, Bank Central Asia (BBCA) 11.85 points, and Bank Mandiri (BMRI) 6.99 points. Overall, major bank stocks were in the green zone today.
In the region, Asia-Pacific markets also rebounded after several subdued days. This positive sentiment was triggered by a statement from US President Donald Trump indicating the possibility of troop withdrawal in the near future.
South Korea’s Kospi index led the gains with a nearly 5% jump at the opening of trading. The small-cap Kosdaq stock index also rose 4.13%, driven by South Korea’s March exports surging 48.3% year-on-year, exceeding market expectations.
In Japan, the Nikkei 225 index strengthened 3.51% and the Topix rose 3.17%. Positive sentiment also came from the Tankan survey released by the Bank of Japan.
Nevertheless, the market is still shadowed by challenges from the energy sector. The government has assured that non-subsidised fuel prices will not rise as of 1 April 2026 and domestic energy supplies remain secure, but global energy price volatility due to the war in the Middle East remains a factor to watch.
Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia on Tuesday (31 March 2026) emphasised that the government will not raise non-subsidised fuel prices as of 1 April 2026.
“Regarding Pertadex or high-quality diesel fuel, there is no price adjustment yet, and what was conveyed by the Cabinet Secretary is exactly that—not less and not more. Of course, with global price fluctuations, we will review according to world developments,” said Bahlil during a press conference on Tuesday (31 March 2026).
On the same occasion, Bahlil also assured that domestic energy supplies are still in a safe condition. He stated that reserves of fuel oil, including diesel, petrol, avtur, and LPG, are currently above the national minimum standards.
“This means that even though we know the geopolitical tensions do not yet know when they will end, and some other countries have implemented efficiency policies. We are grateful for the president’s guidance that all our fuel reserves are above the national minimum standards,” he said.
Bahlil also emphasised that the government has secured alternative sources for oil and LPG imports that previously came from the Middle East. According to him, this step was taken to ensure that volatility in the region does not directly disrupt national energy needs.
“When there is tension in the Middle East, we replace it from the Middle East. Alhamdulillah, we have already obtained it, no more doubts. We have got it,” Bahlil stressed.