Jakarta. Jakarta Composite Index (JCI) tumbled sharply on Friday as escalating tensions in the Middle East rattled investor sentiment, with analysts warning that rising energy prices could ripple across Indonesia’s economy.

The benchmark index plunged 1.62%, or 124 points, to close at 7,585, after trading in a wide range between 7,500 and 7,700 during the second session.

Market activity remained heavy. Trading volume reached 33.94 billion shares with a turnover of Rp 17.64 trillion ($1.04 billion) across more than 1.9 million transactions. The session recorded 168 gainers, 555 decliners, and 94 unchanged stocks, reflecting broad selling pressure.

On the gainers board, Sekar Bumi (SKBM) led the rally with a 24.65% jump, followed by Alakasa Industrial (ALKA) rising 24.53%, Puri Sentul Permai (KDTN) gaining 12.11%, and petrochemical giant Chandra Asri (TPIA) climbing 12.09%.

Meanwhile, MD Pictures (FILM) led the losers after plunging 15%, followed by Pikko Land Development (RODA) dropping 14.86%, Royalindo Investa Wijaya (INDO) declining 14.80%, and Satria Mega Kencana (SOTS) sliding 14.39%.

Analysts at Pilarmas Investindo Sekuritas said the Indonesian market was pressured by intensifying geopolitical tensions in the Middle East.

In a research note released Friday, the brokerage said Asian markets moved mixed as investors remained cautious amid escalating conflict in the region. Armed confrontation between the US–Israel alliance and Iran has entered its second week, with Tehran launching massive retaliatory missile and drone attacks across the Gulf region.

Pilarmas said global geopolitical tensions surged after President Donald Trump signaled his intention to intervene directly in Iran’s leadership dynamics, while the US House rejected a peace resolution that effectively allowed Washington to continue its military policy.

“The impact of the war has pushed global oil prices higher, which in turn raises concerns about global inflation. As a result, market expectations for the Federal Reserve’s rate cuts have shifted back to September or October, as economic pressures weigh on energy-importing countries,” Pilarmas wrote.

From the regional perspective, the brokerage said investors were digesting China’s latest economic outlook, after Beijing set a 2026 GDP growth target of 4.5%–5%. The target signals Beijing’s effort to rebalance its economy while remaining cautious amid global uncertainties.

Separately, Japan’s foreign exchange reserves rose by $15.95 billion to $1.41 trillion in February 2026, marking the highest level since December 2021.

Domestically, Pilarmas warned that prolonged conflict in the Middle East could be particularly challenging for oil-importing countries such as Indonesia.

“The impact will not only be felt in the energy sector, but will spread across the entire domestic economy through fiscal and monetary channels,” the brokerage said.

Meanwhile, Bank Indonesia reported that Indonesia’s foreign exchange reserves remained strong despite declining to $151.9 billion in February, from $154.6 billion in January.

The central bank said the drop reflected government external debt repayments and BI’s exchange-rate stabilization policies amid persistent global financial market uncertainty, even as tax and services revenues as well as government external loan withdrawals provided support.

Despite the decline, the reserve position still equals 6.1 months of imports, or 5.9 months of imports and government external debt payments, well above the international adequacy standard of around three months of imports.

Across Asia, stocks ended mixed following a modest retreat on Wall Street. South Korea’s Kospi edged up less than 0.1% to 5,584, while Japan’s Nikkei 225 rose 0.6% to 55,620.84.

Hong Kong’s Hang Seng jumped 1.6% to 25,732, while the Shanghai Composite gained 0.4% to 4,124.

Oil prices eased slightly Friday after surging earlier in the week amid supply concerns linked to the Iran conflict. US benchmark crude slipped 0.8% to $80.38 per barrel, after hitting $81.01 a day earlier. Brent crude fell 0.6% to $84.79 per barrel, after reaching $85.41 previously.

Analysts warn that if oil prices surge toward $100 per barrel and remain elevated, global economic growth could come under pressure, with market volatility likely to persist as uncertainty surrounding the war continues.

On Wall Street overnight, the S&P 500 fell 0.6% to 6,830, the Dow Jones Industrial Average dropped 1.6% to 47,954, and the Nasdaq Composite slipped 0.3% to 22,748.

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