Flooring Guide by Cinvex – , JAKARTA — The Indonesian stock market continues to grapple with significant volatility. Negative sentiments emanating from the United States have largely hampered the Jakarta Composite Index (IHSG), despite recent signs of a rebound. In this uncertain climate, retail investors are strongly advised to exercise caution in their investment decisions.
Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, observed that the IHSG has begun to stabilize, albeit from its lowest point following a sharp decline. He emphasized that the primary objective is to prevent the IHSG from slipping below the 7,500 mark. On Thursday, March 5, 2026, the index managed to strengthen by 1.76%, closing at 7,710.
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“While the current gains are still limited, we perceive lingering negative sentiment, particularly stemming from geopolitical tensions that are fueling high market volatility,” Nico informed Bisnis, in remarks quoted on Friday, March 6, 2026.
It is widely understood that the joint U.S.-Israel attack on Iran on Saturday, February 28, 2026, has exerted continuous pressure on the IHSG since trading commenced on Monday, March 2, 2026. Initially, this conflict provided a temporary boon to several energy stocks, making the IDXENERGY index the sole sector to record gains during Tuesday’s trading session on March 3, 2026.
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However, by Wednesday, March 4, 2026, all sectoral stock indices closed in the red zone. This widespread decline clearly reflected a ‘risk-off’ sentiment among market participants, who were reacting to the global economic uncertainty triggered by the U.S.-Israel versus Iran conflict.
“Furthermore, the new tariffs imposed by Trump, which came into effect this week, are adding pressure on market players and investors, urging them to exercise greater caution before entering the stock market. Volatility remains high, and we must be vigilant to avoid making costly mistakes,” Nico added, underscoring the need for careful navigation.
Indeed, the IHSG staged a rebound, closing stronger on Thursday, March 5, 2026, with the IDXTRANS sectoral index being the only one to finish in negative territory. Despite these initial signs of market improvement, Nico cautions that the potential for a correction remains a significant possibility.
“Sooner or later, whether today or in the near future, the market will fully absorb and react to the conflict between America and Iran. This holds true as long as the conflict does not impact other Middle Eastern countries.”
The core issue, he elaborated, is that other Middle Eastern nations are also being affected, leading to heightened anxiety among market participants and investors. Consequently, they are holding back from allocating capital to risky assets. Nico believes that a ‘wait and see’ strategy is the prudent choice at this juncture, urging investors to view the prevailing volatility as a potential opportunity.
“The energy and health sectors still appear attractive at present. Additionally, gold-based assets warrant close attention,” he concluded, highlighting promising investment avenues amidst the turbulence.
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