Indonesia Equity Strategy Feedback from the streets of Jakarta

Research evidence excerpt

Indonesia Equity Strategy Feedback from the streets of Jakarta

J P M O R G A N Global Markets Strategy

30 June 2026

Indonesia Equity Strategy

Feedback from the streets of Jakarta

What is happening on the ground in Indonesia? We traveled to Jakarta last week Equity Macro Research

ACto have discussions with local investors and business leaders. Most of our meetings Khoi Vu, CFA

concluded on a cautious note, as policy uncertainties and the risk of a market (65) 6882-8170

downgrade have de-rated Indonesian equities to one of the lowest points in history. khoi.t.vu@jpmorgan.com

On the one hand, pressures from high oil prices and fiscal imbalances are easing, J.P. Morgan Securities Singapore Private Limited

which leaves room for the government to find a balance between supporting social Rajiv Batra AC

policies and maintaining fiscal/macro prudence. On the other hand, investors are (65) 6882-8151

rajiv.j.batra@jpmorgan.com

finding it increasingly difficult to forecast and navigate the policy landscape. The J.P. Morgan Securities Singapore Private Limited

upcoming 2027 draft budget is frequently mentioned as a key signpost to Head of Indonesia Research

determine the medium-term policy trajectory. What are investors looking

Benny Kurniawan, CFA ACfor? A reset in policy priorities to (1) hedge against external uncertainties (stabilize

(62-21) 5291 8024

currency, enhance budget efficiencies); and (2) enhance the private business benny.kurniawan@jpmorgan.com

environment (maintain regulatory stability, deepen foreign trade integration) PT J.P. Morgan Sekuritas Indonesia

would be favored by investors over state-led investment measures, given the near-

term volatilities in global economies. Concrete signs of stabilization will be a