Why the Composite Stock Price Index Plummeted 3.49 Per Cent to 7,321 Level

Indonesia’s Composite Stock Price Index (IHSG) closed down 3.49 per cent during the first trading session on Monday, 9 March 2026. According to Stockbit data, the index plunged 264.6 points to the 7,321 level.

In early trading, the IHSG had fallen 2.79 per cent to 7,374. This decline coincided with the weakening of the rupiah to Rp 17,000 per US dollar at the opening of Monday’s trading.

Ibrahim Assuabi, Director of PT Traze Andalan Futures, stated that several factors drove the decline of the IHSG and weakness in the rupiah. One of these was recent developments from the Middle Eastern conflict, including the election of Iran’s new leader, Mojtaba Khamenei, who replaces Ayatollah Ali Khamenei.

“There has been a change in leadership in Iran, and we can see that this new leader is also an Islamic fundamentalist leader,” Ibrahim said in an official statement on Monday, 9 March 2026.

He predicted there was a strong likelihood that the war in the Middle East would continue over the next six months, particularly following statements by US President Donald Trump indicating he would eliminate or replace the existing Iranian regime.

This development caused tensions in the Middle East to rise, resulting in potential closure of the Strait of Hormuz, which is a critical global trade route for oil and gas. Production from refineries in the United Arab Emirates, Iraq, Saudi Arabia and elsewhere is predicted to push global crude oil prices, including both conventional crude oil and Brent crude, to record highs.

Brent crude oil prices have already surpassed the US$100 per barrel level. “Many analysts believe crude oil prices could well reach the US$200 per barrel level if the Middle Eastern crisis is not resolved within the next month,” he said.

According to Ibrahim, this turmoil is what caused pressure on the IHSG and rupiah at the opening of Monday’s trading.