Inp.polri.go.id - Jakarta. The Indonesia Stock Exchange (IDX) opened in the red on Monday (16/3/2026)as escalating conflict between the United States and Iran fueled expectations of prolonged tight monetary policy. 

The Composite Stock Price Index (IHSG) dropped 21.76 points, or 0.30%, to 7,115.45 during early trade, while the LQ45 index of blue-chip stocks fell 0.46%. Analysts suggest investors adopt a "wait and see" approach, prioritizing cash holdings to hedge against global volatility and the upcoming domestic holiday pause.

"The market is anticipating shifts in global monetary policy, with expectations for Fed rate cuts now reduced due to surging energy prices," said Liza Camelia Suryanata, the Head of Research at Kiwoom Sekuritas Indonesia, as cited by antaranews.com

Market focus remains locked on this week’s FOMC meeting, where the Federal Reserve is expected to provide signals on interest rates amidst high inflation and slowing economic growth. Beyond Middle Eastern tensions, investors are also monitoring high-level trade talks between the US and China, as well as energy security agreements involving Asia-Pacific allies designed to stabilize global supplies.

(mg/inp/pr/rs)