Jakarta. Indonesian stocks fell 1.40% on Monday, shedding 87 points to 6,146 as concerns over oil prices and the fiscal outlook weighed on sentiment, while investors adjusted to the Indonesia Stock Exchange’s (IDX) new Rp 1 minimum share price rule.

Jakarta Composite Index moved between 6,140 and 6,227 during the session. Trading volume reached 36.7 billion shares, with turnover totaling Rp 12 trillion ($667.65 million) across more than 1.64 million transactions. A total of 180 stocks rose, 532 fell and 81 were unchanged.

Domestically, investors weighed the potential fiscal impact of persistently high oil prices alongside changes to the stock exchange’s trading rules. The IDX officially lowered its minimum share price to Rp 1 from Rp 50 on Monday as part of broader reforms to its trading mechanisms.

The exchange has also tightened the criteria for entering the Special Monitoring Board, which uses the Full Call Auction (FCA) mechanism. A total of 92 stocks were removed from the board on Friday.

Pilarmas Investindo Sekuritas said the regulatory changes had ushered in a new adjustment phase for the market, potentially creating psychological pressure among retail investors and increasing short-term volatility.

“The price adjustment is intended to boost confidence among global institutions, demonstrating that Indonesia’s capital market is becoming more open, transparent and adaptive,” Pilarmas said.

However, the brokerage cautioned that the new trading mechanisms could also be exploited by speculators seeking short-term gains, potentially increasing volatility in certain stocks.

External pressures added to the market’s losses, with Pilarmas pointing to weakness across Asian stock markets, geopolitical uncertainty in the Middle East, rising oil prices and higher yields on United States government bonds.

Uncertainty surrounding the Middle East conflict resurfaced after US President Donald Trump rejected Iran’s latest proposal concerning the reopening of the Strait of Hormuz. Trump also said Tehran had gone too far and expressed hope that negotiations could resume this week.

“The uncertainty has also pushed oil prices higher. This is a concern for markets because rising energy prices could intensify inflationary pressures and affect expectations for US monetary policy,” Pilarmas wrote in its Monday research note.

The brokerage added that rising US Treasury yields had further weighed on Indonesian stocks. The yield on the benchmark 10-year US Treasury note approached 5.17%.

“Higher US Treasury yields have raised concerns about tighter global financial conditions and the possibility that interest rates will remain elevated for longer,” Pilarmas said.

Investors are now awaiting several key US economic indicators due this week, including inflation and employment data. The releases could provide further clues about the Federal Reserve’s monetary policy outlook.

Cleveland Federal Reserve Bank President Beth Hammack said several factors, including concerns over government debt, had contributed to the increase in long-term US Treasury yields.

Across Asia, stock markets traded mixed on Monday after a pullback in oil prices last week helped US stocks record their first winning week in three.

Japan’s Nikkei 225 fell 0.7%, while South Korea’s Kospi declined 2.7%. Hong Kong’s Hang Seng Index rose 0.6% to 24,654.86, while the Shanghai Composite Index dropped 1.7%.

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