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🇮🇩 Indonesia /Economy & Trade

Indonesian Stocks Tumble as Global and Domestic Sentiments Sour

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Context piece
  • The Composite Stock Price Index (IHSG) closed lower at 5,342.14 on Monday, down 4.52%.
  • The decline was attributed to negative domestic and global sentiments, including geopolitical tensions between Iran and Israel.
  • All eleven IDX-IC sectoral indices weakened, with infrastructure, industry, and transportation & logistics seeing the largest drops.

Indonesia's stock market experienced a significant downturn on Monday, with the Composite Stock Price Index (IHSG) closing sharply lower at 5,342.14. The index fell by 252.63 points, or 4.52%, reflecting a combination of negative domestic and global factors.

Ratna Lim, Head of Research at Phintraco Sekuritas, stated that selling pressure persisted due to negative influences from both global and domestic markets. Globally, escalating tensions between Iran and Israel threatened a fragile ceasefire, causing crude oil prices to rise over 4% and increasing the risk of sustained inflation and a wider budget deficit for 2026.

Selling pressure continued due to negative factors from global and domestic markets.

— Ratna LimRatna Lim, Head of Research at Phintraco Sekuritas, explained the reasons behind the market's decline.

This geopolitical instability also fueled market expectations that the U.S. Federal Reserve might adopt a hawkish stance for the remainder of the year. Consequently, Asian stock markets weakened, mirroring declines on Wall Street, driven by Middle East tensions and a correction in technology stocks.

The geopolitical tensions have caused crude oil prices to rise more than four percent, increasing the risk of potential continued inflation and a widening of the 2026 state budget deficit.

— Ratna LimRatna Lim elaborated on the global economic impact of the Middle East conflict.

The downturn impacted all eleven sectors within the IDX-IC index. The infrastructure sector suffered the most significant decline, dropping 6.47%, followed by the industry and transportation & logistics sectors, which fell by 6.00% and 5.43%, respectively. The IHSG remained in negative territory throughout both trading sessions.

Looking ahead, analysts anticipate further potential declines, with the IHSG possibly testing the 5,100 level. Trading volume was substantial, with 2,215,560 transactions involving 32.52 billion shares valued at Rp21.74 trillion. Out of the traded stocks, 78 advanced, 661 declined, and 771 remained unchanged.

The potential for further decline in the IHSG is still technically open. Subsequently, the IHSG is expected to test the 5,100 level.

— Ratna LimRatna Lim provided a technical outlook for the Indonesian stock market.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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