Indonesian share prices closed 2.28 percent lower on Friday amid fears over a fresh spike in the price of oil, which hit record highs of 78 dollars per barrel amid an escalation of violence in the Middle East, dealers said.
The Jakarta Stock Exhange Composite index lost 30.444 points at 1,303.585 on volume of 978.465 million shares worth 1.23 trillion rupiah (135 million dollars) Losers led gains 107 to 15, with 49 stocks unchanged.
The rupiah was at 9,170/9,180 to the dollar against Thursday's 9,100/9,110.
Sofyan Afandi, an analyst at Yulie Sekurindo, said Friday's fall was due to unfavourable external factors such as the oil price spike and the escalation of tension in the Middle East. Afandi said there was also a risk to inflation.
"If this happens, the US Federal Reserve may have to raise its interest rate again. This would not be good news for stock markets globally," he said. Telkom dropped 300 rupiah at 7,100 while Indosat fell 125 at 4,375. Bank Mandiri was down 30 rupiah at 1,670 while rival Bank Rakyat Indonesia fell 150 at 4,100.