Jakarta. Indonesia’s benchmark stock index tumbled nearly 6% over the March 9-13 week, with trading activity also subdued sharply as surging oil prices and a looming holiday break weighed on investor sentiment.

The Jakarta Composite Index fell 5.91% to 7,137.212 at Friday’s close, from 7,585.687 a week earlier, according to Indonesia Stock Exchange data. Market capitalization also dropped 6.96%, or around Rp 949 trillion ($56 billion), to Rp 12,678 trillion  from Rp 13,627 trillion in the previous week.

Average daily trading volume slid 25.49% to 31.55 billion shares, while average daily transaction frequency fell 31.54% to 1.87 million trades. Average daily transaction value dropped 31.1% to Rp 17.2 trillion from Rp 24.97 trillion a week earlier.

The selloff came as global markets were rattled by an oil shock linked to escalating tensions in the Middle East. Brent crude rose above $100 a barrel this week, while US benchmark WTI climbed close to $99, as disruptions around the Strait of Hormuz revived fears over energy supplies. Analysts estimate roughly one-fifth of global oil flows pass through the waterway, making any prolonged disruption a major risk for importing countries such as Indonesia.

Mizuho Bank analysts said attacks on ships in and around the Strait of Hormuz had already heightened concerns over supply disruptions and shipping bottlenecks, reinforcing risk-off sentiment across emerging markets. Jakarta equities were among those caught in the global retreat, with investors moving to safer assets as oil prices spiked.

Rising crude prices are also stirring concerns at home. Indonesia’s 2026 state budget assumes an oil price of $70 per barrel, well below current market levels, raising the prospect of a heavier subsidy burden if prices stay elevated. The government has so far said there is no immediate need to revise the budget or raise subsidized fuel prices, but officials have acknowledged that persistently high crude prices could strain public finances. The 2026 budget has allocated Rp 381.3 trillion for energy subsidies and compensation.

President Prabowo Subianto has urged Indonesians to cut fuel use, while officials are weighing measures including wider remote work arrangements and even a possible four-day workweek to curb consumption. Those discussions come as policymakers try to shield households from higher energy costs without worsening fiscal pressures.

Trading was also subdued ahead of Indonesia’s long market closure for Nyepi and Eid al-Fitr. The bourse will be shut from Wednesday, March 18 through Tuesday, March 24, in line with the 2026 exchange holiday calendar, and is due to reopen on Wednesday, March 25.

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