IHSG Falls as Oil Prices Soar and Fed Fears Rise

The Jakarta Composite Index (IHSG) fell by 1.43 percent to close at 6,541.37 during the trading week of September 7-11, 2026. This decline was attributed to rising crude oil prices and expectations that the US Federal Reserve will maintain a hawkish stance at its September 2026 policy meeting.

The IHSG finished the week down from 6,636.47 the previous week, with market capitalization also decreasing by 1.32 percent to Rp11,446 trillion from Rp11,599 trillion last week.

Brent crude oil prices surged 8.7 percent to US$109.97 per barrel, while West Texas Intermediate (WTI) climbed 8.54 percent to US$104 per barrel, according to Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata.

These developments increased the risk of prolonged energy supply disruptions and exacerbated inflationary pressures across multiple countries, Liza noted.