Jakarta. Indonesia’s benchmark stock index suffered a steep decline on Tuesday as investors dumped commodity-linked shares amid mounting pressure on the rupiah, rising global oil prices, and growing uncertainty over domestic economic policy.

The Jakarta Composite Index (JCI) closed down 228.5 points, or 3.46%, at 6,370.6, with broad-based losses dragging nearly all sectors into negative territory.

Total trading value reached Rp25.4 trillion, with 647 stocks declining, 117 advancing, and 195 unchanged. Trading volume stood at 43 billion shares across 2.77 million transactions.

Commodity-related stocks led the selloff, with shares of coal, palm oil, and mining companies posting double-digit losses. Among the hardest hit were Bumi Resources, which fell 9.71%, Dharma Satya Nusantara down 15%, Triputra Agro Persada down 14.97%, Indika Energy down 14.69%, Trimegah Bangun Persada down 12.12%, Merdeka Battery Materials down 11.85%, and Amman Mineral Internasional down 8.12%.

The steep decline came as the rupiah weakened past Rp17,700 per U.S. dollar, intensifying concerns over capital outflows from emerging markets, including Indonesia.

Brokerage firms said market sentiment was weighed down by both global and domestic factors, including uncertainty surrounding tensions between the United States and Iran, elevated oil prices, and speculation over US interest rate policy.

Pilarmas Investindo Sekuritas said global markets had initially gained support after US President Donald Trump reportedly canceled plans for a military strike on Iran following requests from Saudi Arabia, Qatar, and the United Arab Emirates to allow room for negotiations with Tehran.

However, investors remain concerned that persistent inflation in the United States could force the Federal Reserve to raise interest rates again before the end of the year.

Domestically, analysts said market sentiment deteriorated further after reports emerged of a potential single-channel export policy through a state entity, sparking fears over tighter price controls and shrinking margins for commodity exporters.

BRI Danareksa Sekuritas said the policy rumors added pressure on commodity stocks already hit by currency volatility.

“Rupiah depreciation to Rp17,723 per U.S. dollar has increased concerns over foreign capital outflows from emerging markets, including Indonesia,” the brokerage said in a research note.

Attention is now turning to Wednesday’s parliamentary plenary session, where President Prabowo Subianto is scheduled to deliver a speech on the government’s macroeconomic framework and fiscal policy direction.

It is unusual for an Indonesian president to attend a regular House of Representatives plenary session outside the annual state address delivered each August.

Markets are also closely watching Wednesday’s meeting of Bank Indonesia, with economists divided over whether the central bank will raise interest rates to defend the rupiah.

Bank Indonesia Governor Perry Warjiyo said the central bank would cut the maximum amount of US dollars individuals can purchase without underlying transactions to $25,000 starting next month, half the current limit.

Perry said the ceiling had already been lowered several times this year, from $100,000 previously to $50,000 in April, as part of efforts to stabilize the rupiah.

Consensus expectations point to a 25 basis-point rate hike to 5%, although Mirae Asset Sekuritas expects Bank Indonesia to maintain rates at 4.75% in what it described as a “hawkish hold.”

The brokerage argued that further tightening would likely have limited impact because the rupiah’s weakness is being driven more by seasonal and structural factors than by interest rate differentials alone.