JCI Slips as Geopolitical Tensions Over Iran-Israel-US Escalate

TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) of the Indonesia Stock Exchange (IDX) declined on Monday, following the lead of other Asian stock exchanges. The weakening was triggered by an increase in conflict between Iran, the United States, and Israel.

The JCI opened down by 23.95 points or 0.29 percent to 8,211.31. Meanwhile, the group of 45 leading stocks (LQ45) index fell by 2.99 points or 0.36 percent to 834.90.

"Kiwoom Research suggests reducing portfolio positions and adopting a wait-and-see attitude for the time being," said Head of Research at Kiwoom Sekuritas Indonesia, Liza Camelia Suryanata, in her analysis in Jakarta on Monday, March 2, 2026, as quoted from Antara.

Liza stated that market participants entered this week with geopolitical risks as the main driver.

She mentioned that energy and precious metals are the main defensive sectors. Meanwhile, global equities and risky assets are facing high volatility at the opening of the market this Monday, and at least for the next week.

"The main focus for investors is the duration of the conflict and level of escalation, stability of the Strait of Hormuz, and the direction of oil prices above US$90-100 per barrel," said Liza.

On the other hand, reflecting on the Russia-Ukraine War in 2022, Liza mentioned that Indonesia's commodity-driven market is actually benefiting from the increase in commodity prices globally.

Stock exchanges in Asian countries weakened, with the Kuwait Stock Exchange temporarily halting trading and the United Arab Emirates closing its stock market on Monday and Tuesday following Iran's attack.

The European Union called for maximum restraint, protection of civilians, full respect for international law, and prevention of escalating tensions that could disrupt the Strait of Hormuz and trigger global economic impacts. However, there are differences of opinion within the bloc, and Europe's influence on the conflict is considered limited.

Domestically, market participants are anticipating the release of February 2026 inflation data and January 2026 trade balance data. The trade balance is expected to show a 2.76 billion surplus increase, as well as noticeable import and export growth.

The U.S. stock market on Wall Street declined across the board on Friday, February 27. The Dow Jones index fell by 1.05 percent to 48,977.92, the S&P 500 index corrected by 0.43 percent to 6,878.88, and the Nasdaq index weakened by 0.92 percent to 22,668.21.

Asian regional stock markets this morning, including the Nikkei index which weakened by 908.90 points or 1.54 percent to 57,941.39, the Shanghai index weakening by 19.35 or 0.47 percent to 4,143.52, the Hang Seng index weakening by 698.67 points or 2.62 percent to 25,931.85, the Kuala Lumpur index weakening by 15.02 points or 0.87 percent to 1,701.59, and the Strait Times index weakening by 101.54 points or 2.03 percent to 4893.52.

Read: Bank Indonesia Moves to Stabilize Rupiah as Iran Conflict Escalates

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