JAKARTA – The Jakarta Composite Index (IHSG) of the Indonesia Stock Exchange (IDX) displayed varied movements on Wednesday, March 25, 2026, as market participants closely monitored the escalating conflict between the United States and Israel with Iran. The IHSG commenced trading with a decline, shedding 22.22 points or 0.31 percent to stand at 7,084.62. In contrast, the LQ45 index, representing 45 blue-chip stocks, registered an increase of 1.20 points or 0.17 percent, reaching 723.60.
“The IHSG is anticipated to potentially weaken further, likely testing crucial support levels between 6,800 and 7,000,” remarked Ratna Lim, Head of Research at Phintraco Sekuritas, in her market analysis on Wednesday. This outlook comes as geopolitical tensions continue to cast a shadow over global financial stability.
Internationally, US President Donald Trump announced a temporary halt to military actions against Iran, citing ongoing negotiations and postponing planned strikes on Iranian power plants, provided Iran reopens the Strait of Hormuz immediately. However, Iran has denied any direct negotiations, although it acknowledged receiving messages from other nations conveying Washington’s request for dialogue. This development follows Iran’s earlier threats to target US and Israeli energy, information technology, and desalination infrastructure if its own energy facilities were attacked.
Beyond geopolitical tremors, the significant volatility in crude oil and gas prices has prompted central banks worldwide to remain on high alert, bracing for a potential resurgence in inflation. Last week, major central banks including the US Federal Reserve (The Fed), the European Central Bank (ECB), the Bank of England (BoE), the Bank of Japan (BoJ), and the Bank of Canada all opted to maintain their respective interest rates. Despite the Fed’s projection of a single 25 basis points rate cut this year, growing investor anxiety over inflation has led many to discount this possibility.
Domestically, Bank Indonesia (BI) has implemented new measures aimed at curbing speculative activities that could exacerbate rupiah volatility. The central bank lowered the threshold for US dollar purchases requiring supporting documents from $100,000 to $50,000. This regulation will come into effect on April 1, 2026, with a transition period extending until April 30, 2026. Conversely, to assist corporations in managing exchange rate risks more effectively, BI has increased the hedging transaction limit from $5 million to $10 million per transaction.
Furthermore, the Indonesian government is actively exploring various budget efficiency measures, particularly within ministerial and institutional expenditure posts deemed capable of reduction. These efforts are designed to uphold fiscal discipline and ensure the continuity of priority programs amidst the backdrop of rising global crude oil prices. The government is also considering a policy of one-day per week Work From Home (WFH) or a four-day work week option for both civil servants and private sector employees, an initiative aimed at conserving fuel consumption. “Investors are keenly awaiting the specific policies the government will implement,” added Ratna.
Looking back at the previous trading day, Tuesday, March 24, 2026, European stock markets exhibited mixed performance. The Euro Stoxx 50 declined by 0.08 percent, while the UK’s FTSE 100 rose by 0.72 percent. Germany’s DAX saw a marginal dip of 0.07 percent, and France’s CAC gained 0.23 percent. Meanwhile, Wall Street’s major indices all closed lower, with the S&P 500 falling 0.37 percent to 6,556.37, the Nasdaq Composite trimming 0.77 percent to 22,002.45, and the Dow Jones Industrial Average easing 0.18 percent to 46,124.06.
As trading commenced in Asian regional markets this morning, indices largely trended upwards. Japan’s Nikkei surged by 1,515.60 points or 2.90 percent to 53,767.90. The Shanghai Composite Index climbed 41.52 points or 1.07 percent to 3,922.80. Hong Kong’s Hang Seng Index advanced 318.00 points or 1.27 percent to 25,381.72, and Singapore’s Strait Times Index posted a gain of 35.06 points or 0.72 percent, reaching 4,897.49.