---
title: "Indonesia Stocks Sink to 2020 Low  on Middle East Strains, Capital Flight"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/288991689.md"
description: "Indonesian stocks hit a 2020 low, dropping 2.5% amid Middle East tensions and capital flight. The sell-off, driven by fears of renewed Iran-Israel conflict and domestic concerns over President Prabowo's spending agenda, marks a >30% annual decline. The rupiah also hit record lows despite central bank assurances. Losses were broad-based, led by transport, energy, and industrial sectors."
datetime: "2026-06-08T02:22:29.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/288991689.md)
  - [en](https://longbridge.com/en/news/288991689.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/288991689.md)
generator: "portal-rs"
---

# Indonesia Stocks Sink to 2020 Low  on Middle East Strains, Capital Flight

Indonesian shares plunged 140 points, or 2.5%, to around 5,457 in Monday morning trading, marking the fourth straight session of losses and notching their lowest level since November 2020.

The sell-off tracked declines across regional peers after reports of an Iranian missile strike on Israel reignited fears over the fragile ceasefire between Washington and Tehran.

Domestically, heavy capital outflows deepened as the market has now plunged more than 30% this year.

Meanwhile, the rupiah repeatedly slid to record lows amid investor unease over President Prabowo’s expansive spending agenda and surging fuel subsidies tied to the Middle East war.

Weekend assurances from the central bank chief and finance minister to raise yields on local assets failed to stem the rout.

Losses were broad-based, led by transport, energy, industrials, and cyclicals.

Major laggards included MD Entertainment (-12.1%), Impack Pratama Industries (-10.5%), Vale Indonesia (-9.8%), and Hartadinata Abadi (-8.0%).

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**