JAKARTA - Research from Macquarie Capital Indonesia predicts that investor optimism regarding the Indonesian economy under President Prabowo Subianto's leadership will strengthen in 2026 following an improving investment climate.
Macquarie emphasizes that improved policy execution and the sustainability of structural reforms are key factors in maintaining investor confidence.
"The government's focus on more effective governance and policy implementation is considered one of the main reasons for the positive market sentiment towards Indonesia," said Macquarie Capital Indonesia Head of Research Ari Jahja, as quoted by Antara on Wednesday, November 19.
Consistently, the report also provides a positive signal for market players by recommending tactical buying opportunities.
This recommendation indicates that the fundamentals of the Indonesian capital market are considered strong enough to provide momentum for short-term investment.
"Although improved policy execution and structural reforms remain crucial to maintaining investor confidence, we recommend tactical buying opportunities," said Ari.
From a stock market perspective, Macquarie assesses that Morgan Stanley Capital International (MSCI) Indonesia's valuation remains at a reasonable and competitive level in the region.
The institution estimates that earnings per share (EPS) growth could reach around 10 percent in 2026, driven by operational improvements at various major issuers.
"The valuation of the MSCI Indonesia Index is still considered reasonable, and we anticipate earnings per share (EPS) growth of around 10 percent in 2026. We prefer stocks that demonstrate operational improvements, regardless of overall macroeconomic conditions," said Ari.
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