Jakarta. Jakarta Composite Index (JCI) opened lower on Wednesday, slipping 22 points or 0.31% to 7,084 after the Eid holiday break, as lingering geopolitical tensions and a global risk-off mood kept investors cautious.

The benchmark had previously closed at 7,106 on March 17.

JCI traded between 7,068 and 7,097 in early Wednesday session. Trading activity remained moderate, with 2.64 billion shares changing hands and turnover reaching Rp 1.58 trillion ($93.39 million) across more than 92,400 transactions. Losers dominated the market, with 295 stocks declining against 151 gainers, while 250 were unchanged.

BRI Danareksa Sekuritas said the index is likely to remain under pressure following the long holiday, as geopolitical uncertainty persists. While there were talks of a ceasefire and a reported five-day delay of potential US strikes on Iran’s energy facilities, Iran has denied such developments.

The brokerage noted that risk-off sentiment continues to dominate, reflected in volatile commodity prices, including gold, oil, and natural gas, as well as weaker regional equity markets.

On the domestic front, Bank Indonesia held its benchmark interest rate steady at 4.75% on March 17, 2026. The central bank also lowered the threshold for US dollar purchases requiring underlying documents to $50,000 from $100,000.

“This policy aims to curb speculative actions that could worsen rupiah volatility,” Phintraco Sekuritas wrote in its Wednesday research note.

The rule will take effect on April 1, 2026, with a transition period lasting until April 30. Meanwhile, Bank Indonesia raised the hedging transaction limit to $10 million per transaction from $5 million, allowing corporations greater flexibility in managing exchange rate risks.

Phintraco added that the government is reviewing budget efficiency measures, particularly in ministry and agency spending, to maintain fiscal discipline while ensuring priority programs continue amid rising global oil prices.

“The government is also considering a one-day work-from-home policy per week or a four-day workweek option for civil servants and the private sector to reduce fuel consumption. Investors are closely watching what policy direction the government will take,” the brokerage said.

At the same time, higher liquified natural gas (LNG) prices could benefit Indonesia as an exporter, with key markets including Japan, South Korea, and China.

Globally, central banks remain on alert for a renewed rise in inflation triggered by volatile oil and gas prices. Last week, the Federal Reserve, European Central Bank, Bank of England, Bank of Japan, and Bank of Canada all held their benchmark rates steady.

Although the Federal Reserve still projects one rate cut of 25 bps this year, investors have largely priced it out amid persistent inflation concerns.

“Thus, the JCI is expected to remain under pressure and may test support levels in the range of 6,800–7,000,” Phintraco Sekuritas said.

Overnight, US equities retreated as uncertainty surrounding the Iran conflict persisted. The S&P 500 fell 0.4%, the Dow Jones Industrial Average lost 0.2% or 84 points, and the Nasdaq Composite dropped 0.8%.

Markets have swung sharply after US President Donald Trump signaled potential progress in talks with Iran earlier this week, briefly lifting sentiment. However, continued attacks in the Middle East and Iran’s denial of direct negotiations have kept volatility elevated.

Brent crude rebounded 4.6% to settle at $104.49 per barrel, reversing part of the previous session’s more than 10% drop.

In Asia, markets traded higher as of 8:57 a.m. Jakarta time. Japan’s Nikkei surged 2.97% to 53,814, South Korea’s Kospi climbed 3.32% to 5,738, Hong Kong’s Hang Seng gained 0.91% to 25,292, and China’s Shanghai Composite rose 0.87% to 3,914.

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