Inp.polri.go.id - Jakarta. The Indonesia Stock Exchange (IDX) Composite Index (IHSG) closed sharply lower on Wednesday (4/3/2026), dropping 4.57% to 7,577.06. The heavy sell-off was triggered by a "double blow" of escalating Middle East conflicts and Fitch Ratings’ decision to revise Indonesia’s credit outlook from stable to negative.

The combination of Middle East geopolitical escalation and Fitch Ratings' downward revision of Indonesia’s credit outlook drove significant capital outflows, according to antaranews.com.

Market confidence faltered as Fitch warned that centralized policymaking could impact Indonesia's medium-term fiscal prospects. This sentiment triggered aggressive foreign selling, particularly in big-cap banking stocks, while the Rupiah weakened against a surging U.S. Dollar. 

Regionally, Asian markets also sank amid fears that the closure of the Strait of Hormuz could disrupt global oil supplies and spike inflation. Consequently, investors are fleeing emerging market equities in favor of safe-haven assets like gold.

(mg/inp/pr/rs)