Jakarta. Indonesia’s benchmark index opened higher on Tuesday, even as global markets remain on edge following a sharp escalation in the Middle East conflict.

Jakarta Composite Index (JCI) jumped 43 points, or 0.54%, to 8,059 in early trading.

Data from RTI showed that 2.29 billion shares changed hands in the opening minutes, with a total transaction value of Rp 5.78 trillion ($342.85 million) across 122,861 trades. Of the stocks traded, 300 advanced, 189 declined, and 182 were unchanged.

Global sentiment remains fragile after a coordinated US–Israel attack on Iran reportedly killed hundreds, including Supreme Leader Ayatollah Ali Khamenei, triggering a broad risk-off wave. Iran retaliated with strikes on Israel, Bahrain, Kuwait, Qatar, the United Arab Emirates, and US bases in the region.

US President Donald Trump said the operation could last four to five weeks and continue “as long as necessary,” with the capacity to extend further. Iran, meanwhile, asserted that it would not negotiate with the US.

Kiwoom Sekuritas Indonesia said in its research note that the market’s main concern is potential energy supply disruption and renewed inflationary pressure. Historically, global equities tend to recover relatively quickly after military conflicts, unless energy prices spike for a prolonged period. Investors are now weighing whether the situation represents a short-term shock or a more protracted conflict.

Phintraco Sekuritas shared a similar view, noting that heightened geopolitical tensions have prompted investors to shy away from risk assets.

“However, most energy and gold mining-related stocks recorded gains, helping to prevent further weakening of the JCI,” Phintraco wrote in a research note on Tuesday.

On the domestic front, inflation rose 0.68% month-to-month in February 2026, reversing a 0.15% deflation in January. The increase was largely driven by higher prices in the Food, Beverages and Tobacco category, which typically contributes significantly during the Ramadan period.

Annual inflation accelerated to 4.76% in February 2026 from 3.55% a year earlier, partly due to the impact of electricity tariff discounts implemented at the start of 2025.

Phintraco also highlighted that Indonesia’s trade surplus narrowed to $0.95 billion in January 2026 from $3.49 billion previously, as imports surged 18.21% year-on-year while exports grew only 3.39%. Meanwhile, Indonesia’s manufacturing PMI rose to 53.8 in February 2026 from 52.6, signaling continued expansion.

Kiwoom Research expects the JCI to test the psychological level of 8,000 down to 7,950 in the near term, with a possibility of heading toward the lower channel support at 7,840. As such, the brokerage maintained a wait-and-see stance.

Oil prices surged more than 6% on Monday on concerns that a war involving Iran could disrupt global crude flows and worsen inflation. The spike is likely to translate into higher fuel prices, weighing on both households and businesses.

On Wall Street, the S&P 500 initially fell as much as 1.2% before paring losses and closing up less than 0.1%. The Dow Jones Industrial Average slipped 73 points, or 0.1%, while the Nasdaq Composite gained 0.4%, both rebounding from steep early declines.

Across Asia, Japan’s Nikkei fell 0.56% to 57,729. South Korea’s Kospi dropped 1.28% at the open to 6,165. Hong Kong’s Hang Seng initially rose 0.50% to 26,190 but later slipped to 25,964, while China’s Shanghai SSE opened up 0.16% before retreating 0.97% to 4,141.