JCI Plunges 4.3% as Oil Prices Slide

TEMPO.CO, Jakarta - The Jakarta Composite Index (JCI) closed down by 4.32 percent to 7,596 in the first trading session on Wednesday, March 4, 2026. The decline in the index occurred amid rising world oil prices due to the impact of the Iran-Israel war.

In early trading, the JCI had dropped by 2.76 percent to 7,720. Meanwhile, the price of Brent oil has surpassed US$80 per barrel. Analysis from Kiwoom Sekuritas Indonesia stated that as long as the oil price remains below US$90, its impact on the market usually takes the form of sentiment volatility.

"However, if Brent penetrates US$100 accompanied by physical distribution disruptions, the risk could turn into energy shock potential pressing on inflation, the rupiah, and the JCI more broadly," as written in the analysis by Kiwoom Sekuritas on Wednesday, March 4, 2026.

Kiwoom stated that the volatility in oil prices has affected trading sectors in the JCI. The potential sectors to benefit are energy sectors such as oil and coal. Oil and gas issuers like APEX, ENRG, ELSA, MEDC, as well as coal issuers like AADI, ADRO, ITMG, PTBA, are likely to gain positive sentiment if global energy prices rise.

From a commodities perspective, a surge in energy prices typically drives inflation in the commodities sector, ultimately strengthening the outlook for resource-related industries.

Nevertheless, several JCI sectors will face pressure due to the surge in world oil prices. These include transportation and logistics, as fuel costs are a significant part of their operational expenses. Furthermore, the manufacturing industry is affected by the rise in energy prices, which increases production costs and puts pressure on margins.

Other sectors that will also be under pressure are consumers. If the rise in energy prices triggers inflation, the public's purchasing power could be affected.

Citing data from the Indonesia Stock Exchange (IDX), the JCI in the first session today plunged by 4.32 percent to 7,596.9 compared to the previous level of 7,939.7. The stock transaction value in the early session was recorded at 29.8 trillion with a stock volume of 44.4 billion.

Read: Soaring Oil Prices: Challenges Ahead for Indonesia

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