Cinvex Flooring Guide JAKARTA – The Business-27 Index opened in the red on Tuesday, May 5, 2026, triggered by escalating tensions between the United States and Iran concerning the strategic Strait of Hormuz. Shares of ASII, JPFA, and MAPI led the decline.
According to IDX Mobile data at 09:05 AM, the index, a collaboration with daily Bisnis Indonesia, opened 0.44% lower at 464.64. Out of the 27 constituent stocks, 17 were trading down, 3 were up, and 7 remained unchanged.
The downturn was observed across most of the index’s constituents. PT Astra International Tbk. (ASII) experienced a sharp drop of 4.94%, closing at Rp5,775. This was followed by PT Japfa Comfeed Indonesia Tbk. (JPFA), which fell 4.18% to Rp2,520, and PT Mitra Adi Perkasa Tbk. (MAPI), down 3.47% to Rp1,250.
Other constituent stocks also saw declines, with PT Aneka Tambang (Persero) Tbk. (ANTM) dropping 2.63% to Rp3,700, and PT Vale Indonesia Tbk. (INCO) correcting by 2.55% to Rp6,700.
Conversely, PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) showed a gain of 2.30%, reaching Rp3,110. PT Triputra Agro Persada Tbk. (TAPG) followed with a 1.46% increase to Rp2,090, and PT Bank Central Asia Tbk. (BBCA) edged up 0.42% to Rp5,925.
Phintraco Sekuritas Research Team attributed the increased global market pressure to the heightened conflict in the Middle East, which is directly impacting stock market indices and global commodity prices.
US President Donald Trump announced “Project Freedom” to ensure the smooth global distribution of oil through the Strait of Hormuz. However, the situation on the ground remains volatile. Iranian media claimed a missile attack on a US warship, a claim denied by the US military. Meanwhile, reports indicated a fire and explosion incident aboard a South Korean-flagged vessel in the region.
Tensions have also extended to the United Arab Emirates, where missile and drone attacks reportedly caused fires in the Fujairah Oil Industry Zone, one of the largest oil storage and distribution hubs in the Middle East. This area is crucial as it serves as an alternative oil distribution route bypassing the Strait of Hormuz.
On the domestic economic front, recent data reveals mixed dynamics. Indonesia’s manufacturing activity contracted, with the Purchasing Managers’ Index (PMI) falling to 49.1 in April 2026, the lowest level since June 2025. This downturn is believed to be influenced by the lingering effects of global geopolitical conflicts.
Indonesia’s trade balance surplus in March 2026 stood at US$3.32 billion, a decrease from the same period last year due to lower exports. Nevertheless, this figure shows an improvement compared to the previous month.
Meanwhile, annual inflation softened to 2.4% in April 2026, the lowest rate since August 2025, supported by a slower rise in food and housing prices.
Market participants are now anticipating the release of first-quarter 2026 economic growth data, which is projected to show a quarterly contraction but a year-on-year increase. In terms of policy, the government is also reportedly planning to implement export duties and a windfall tax on nickel commodities to offset energy subsidy burdens.
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Summary
The Business-27 Index opened 0.44% lower on May 5, 2026, as geopolitical tensions between the United States and Iran escalated near the Strait of Hormuz. Shares of major companies including ASII, JPFA, and MAPI led the market decline, while the broader regional instability impacted commodity prices and investor sentiment. Despite the overall downturn, stocks such as BBRI and BBCA managed to post gains amidst the volatile trading environment.
Domestically, Indonesia’s manufacturing sector contracted with an April PMI of 49.1, reflecting the impact of global conflicts. While annual inflation eased to 2.4%, the nation’s trade surplus saw a year-on-year decrease despite showing slight improvement over the previous month. Markets are now closely monitoring upcoming first-quarter economic growth data and potential government policy shifts regarding nickel export duties and windfall taxes.