Stock Exchange Chief Responds to IHSG Decline Due to Middle East Conflict
The Acting Director-General (Pjs) of PT Bursa Efek Indonesia (BEI), Jeffrey Hendrik, has called on investors to remain rational and always consider fundamental factors when making investment decisions, amid escalating conflict in the Middle East.
“Facing increasing uncertainty due to the geopolitical escalation occurring at the global level, we urge investors to remain rational and always pay attention to fundamentals,” Jeffrey said to journalists in Jakarta on Monday, 2 March 2026.
The appeal was made as the conflict between Iran, Israel, and the United States intensified, causing weakness across stock exchanges in the Asian region during Monday’s trading, including Indonesia’s market.
He reminded investors to adjust their investment strategies whilst maintaining consideration for each investor’s individual risk tolerance. “Adjust your investment strategy according to each investor’s risk tolerance,” said Jeffrey.
During Monday morning’s trading, the IHSG opened weaker by 23.95 points, or 0.29 percent, to position 8,211.31. Stock exchanges across Asian countries also weakened during Monday morning’s trading. The Kuwait Stock Exchange even temporarily halted trading, and the United Arab Emirates (UAE) closed its stock market on Monday (2 March) and Tuesday (3 March).
The Middle East conflict reached its peak after the United States and Israel launched large-scale airstrikes against several strategic targets in Iran, including military complexes and facilities believed to be related to Tehran’s missile and nuclear programmes, in an operation codenamed Operation Epic Fury.
Not remaining idle, Iran responded by launching ballistic missile attacks against most countries hosting US military bases or its allies in the Gulf region, including Bahrain, Qatar, Kuwait, Saudi Arabia, Jordan, and the United Arab Emirates (UAE).
As a consequence of this escalation, developments have emerged regarding the strategic Strait of Hormuz shipping route, which is a vital transit route for approximately 20-25 percent of global crude oil and LNG supplies daily.
A closure of the Strait of Hormuz could potentially shake global energy markets, as this route typically facilitates the trade of crude oil and gas reaching tens of millions of barrels per day, and could impact oil price conditions, energy supply chains, and shipping insurance costs that could spike sharply.