Jakarta. Jakarta stocks fell 73 points, or 1.13%, to 6,461 on Tuesday as surging oil prices, heightened geopolitical tensions and weakness across regional markets weighed on investor sentiment.

A total of 330 stocks rose, 332 declined, and 301 were unchanged. Trading value reached Rp 12.5 trillion ($706.66 million).

Domestically, investors continued to focus on the Cabinet reshuffle after President Prabowo Subianto appointed Suahasil Nazara as finance minister, replacing Purbaya Yudhi Sadewa.

“Markets hope the change will maintain policy continuity and fiscal discipline. Suahasil emphasized the importance of maintaining the health and credibility of state finances so that the state budget can continue to support the government’s priority programs,” Pilarmas Investindo Sekuritas said in a research note.

Suahasil said the state budget (APBN) has two main functions: supporting economic growth and maintaining stability. He also reaffirmed the government’s commitment to keeping the budget deficit below 3% of gross domestic product.

Meanwhile, Indonesia will keep subsidized fuel prices unchanged through the end of 2026 despite a sharp rise in global crude oil prices, Energy and Mineral Resources Minister Bahlil Lahadalia said.

“Until Dec. 31, 2026, regardless of the price in the world, we will not increase the price of subsidized fuel,” Bahlil said.

Pertalite is currently priced at Rp 10,000 ($0.63) per liter, while BioSolar costs Rp 6,800 per liter.

Bahlil said crude oil prices had climbed to around $106 a barrel, well above the $70-a-barrel assumption used in Indonesia’s 2026 state budget. Indonesia’s average crude oil price from January to September stood at around $85-$90 a barrel, he said, raising concerns over additional pressure on the government’s energy subsidy bill.

“Although domestic sentiment is relatively supported by fiscal policy continuity, investors still need to monitor external developments that could keep the JCI volatile,” Pilarmas said.

The brokerage said global sentiment remained a drag on the Jakarta Composite Index, particularly as geopolitical tensions pushed up energy prices and most Asian markets traded lower.

“Market attention is focused on global oil prices, which have extended their gains after Saudi Arabia closed a major oil pipeline route. This has raised concerns over global energy supplies,” Pilarmas said.

Geopolitical tensions in the Middle East also intensified. A diplomatic meeting between Iran and Gulf Arab states to discuss the situation around the Strait of Hormuz was postponed. Iran also claimed that a supertanker attempting to enter a restricted area in the strait exploded after hitting a mine.

Iran has maintained that it will not enter talks with the United States until its demands are met.

“These developments have heightened market concerns over the security of global oil trade routes,” Pilarmas said.

Ukraine, meanwhile, denied US President Donald Trump’s claim that Kyiv and Moscow had agreed to halt attacks on each other’s energy infrastructure.

Ukrainian President Volodymyr Zelenskyy said Ukraine was ready to stop attacks on Russian energy targets if Moscow did the same. The statement contrasted with Trump’s claim that Russia and Ukraine had agreed to suspend attacks on energy infrastructure.

Pilarmas said rising energy prices were a concern for investors as they could reignite inflationary pressures and influence the Federal Reserve’s monetary policy direction.

Markets are now pricing in about a 92% chance of a 25-basis-point Fed rate hike at Wednesday’s meeting, according to Pilarmas. The expectation added pressure to riskier assets, including equities.

Across Asia, Japan’s benchmark Nikkei 225 surged in morning trading before giving up its gains in the afternoon to finish little changed, down less than 0.1%. South Korea’s Kospi fell 0.9%, Hong Kong’s Hang Seng declined 1.0%, and the Shanghai Composite lost 0.5%.

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