The IDX Composite (IDX) Weakens as Oil Prices Rise, Investors Become Cautious

Composite Stock Price Index (IHSG) closed trading on Thursday (23/7/2026) with a 0.30% weakening to 6,315.31, reversing from a gain of more than 1.5% in the first session.

A surge in crude oil prices was the main trigger, with WTI jumping 3.7% to $90.03 per barrel and Brent rising 4.5% to $98.39 per barrel, due to the escalation of the US-Iran conflict in the Middle East.

Investors began to exercise caution and engage in short-term trading, while the Indonesian stock market transaction value reached Rp23.94 trillion, an increase of nearly 30% from the previous day. Major banking stocks fell, but the property sector actually recorded a 3.13% increase.

Key Points

• The IDX Composite (IDX) closed down 0.30% to 6,315.31 after gaining more than 1.5% in the first session, triggered by a surge in crude oil prices that made investors cautious.

• WTI oil prices jumped 3.7% to $90.03 a barrel and Brent rose 4.5% to $98.39 a barrel due to the escalation of the US-Iran conflict in the Middle East.

• Major banking stocks fell in unison: BBCA fell 3.46%, BMRI fell 1.36%, and BBRI fell 0.66%, while the property sector actually strengthened by 3.13%.

Reasons for the Weakening of the IDX

The weakening of the IDX was triggered by several main factors:

1. Oil Price Surge

WTI and Brent crude oil prices are at their highest levels in six weeks due to escalating tensions between the US and Iran.

The rise in oil prices has raised concerns about inflation and higher energy costs, which could depress economic growth.

2. Investors' Cautious Attitude

Market participants tend to adopt a wait-and-see attitude and engage in short-term trading amid geopolitical uncertainty.

This is reflected in a significant increase in transaction volume.

3. Weakening of the Banking Sector

The stocks of major banks with the largest market capitalizations all fell: BBCA fell 3.46%, BMRI fell 1.36%, and BBRI fell 0.66%.

This weakening put significant pressure on the IDX due to the large weighting of the financial sector in the index.

4. Weakening of the Rupiah

The rupiah also weakened 0.11% against the US dollar to Rp17,936, adding pressure on the stock market.

Read Also: How Many Shares Are in 1 Lot? Here Are the IDX Rules and How to Calculate Them

Sectoral and Stock Performance on the IDX

Source: Google Finance

Although the IDX weakened, most sectoral indices continued to strengthen.

The property sector led the increase with 3.13%, followed by the energy sector which rose 1.59% and the primary consumer goods sector 1.54%.

The sectors that weakened included: non-primary consumer goods (-1,08%), finance(-1.00%), and industry(-0,94%).

The stocks with the biggest gains were: FUTR, MPRO, ENAK, ZATA, and ALKA. 

The stocks with the biggest losses were: SWID, HOPE, LUCK, WMUU, and FORU.

Monitor the movement of the IDX and manage your investment portfolio. Register at Bittime, a trusted crypto trading platform in Indonesia

Read Also: Tokenized Stocks vs. Regular Stocks: Definition, Differences, and How to Buy

Future Projections of the IDX

Phintraco Sekuritas analysts project that the IDX will move in a consolidation pattern with a weakening trend on Friday (24/7), in line with potential profit-taking by investors ahead of the weekend.

Support levels to watch out for:

- Nearest support: 6.279 (MA5)

- Next support: 6.200-6.250

If the IDX breaks down from the MA5 level around 6,279, it has the potential to test the next support level at 6,200-6,250.

Meanwhile, regional Asian stock markets moved mixed: the Nikkei rose 0.39%, Shanghai rose 0.25%, the Hang Seng rose 1.28%, the Kospi rose 4.40%, and the Strait Times weakened 0.32%.

Read Also: How to Trade Futures on Bittime for Beginners

Implications for Investors

1. Stay Calm and Rational

The weakening of the IDX is a market reaction to short-term uncertainty. Investors with a long-term horizon should avoid making hasty, emotionally driven decisions.

2. Monitor Oil Prices

Geopolitical developments in the Middle East and oil prices will be key factors influencing the movement of the IDX in the near future.

3. Pay attention to the defensive sector

The property and energy sectors showed resilience amid the downturn, while the banking and non-primary consumer sectors were more vulnerable.

4. Take Advantage of Corrections

For long-term investors, the weakening of the IDX could be an opportunity to accumulate quality stocks with attractive valuations.

Read Also:List of Stocks with the Most Investors in Indonesia 2026

Conclusion

The IDX Composite (IDX) weakened to 6,315 due to a surge in oil prices triggered by the escalating US-Iran conflict. Major banking stocks were the main drags, while the property and energy sectors actually strengthened.

Investors are advised to remain alert to short-term volatility, but remain focused on long-term fundamentals.

Monitor geopolitical developments and oil prices as key indicators of the future movement of the IDX with Bittime!

Bittime is a licensed and regulated Digital Financial Asset Trader (PAKD) supervised by Indonesia’s Financial Services Authority (OJK) — where you can buy Bitcoin in Indonesia and hundreds of other crypto assets starting from just Rp10,000. The registration process is fast, secure, and you can get started today.

Track USDT to IDR conversions and monitor your favorite crypto assets in real time. Everything is available in one crypto investment app that you can download for free on the Play Store

Ready to start? Register now on Bittime and execute your investment strategy with a platform trusted by millions of users in Indonesia.

FAQ

What caused the IDX to weaken?

The surge in crude oil prices due to the escalation of the US-Iran conflict has made investors cautious and engage in short-term trading.

How much did the IDX fall?

The IDX fell 0.30% to 6,315.31, after strengthening by more than 1.5% in the first session.

What is the current price of oil?

WTI at $90.03 per barrel (up 3.7%) and Brent at $98.39 per barrel (up 4.5%).

What is the impact on banking stocks?

BBCA fell 3.46%, BMRI fell 1.36%, and BBRI fell 0.66%.

Which sectors are strengthening?

The property sector rose 3.13%, energy rose 1.59%, and primary consumer goods rose 1.54%.