Value Re-established But Stay Underweight for Now: Indonesia – Economics, Macro & Equity Strategy | Asia Pacific

Research evidence excerpt

Value Re-established But Stay Underweight for Now: Indonesia – Economics, Macro & Equity Strategy | Asia Pacific

Idea

June 18, 2026 01:51 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MIndonesia – Economics, Macro & Equity Strategy Jonathan F Garner

| Asia Pacific Equity Strategist

Jonathan.Garner@morganstanley.com +65 6834-8172

Derrick Y Kam

Asia EconomistValue Re-estabished But Stay Derrick.Kam@morganstanley.com +65 6834-8272

Kristal Ji

Equity StrategistUnderweight for Now Kristal.Ji@morganstanley.com +65 6834-6949

Morgan Stanley Asia Limited+

Although the equity risk premium has risen substantially it could Gek Teng Khoo

well rise further creating a better buying opportunity later. The Strategist

Gek.Teng.Khoo@morganstanley.com +852 3963-0303

upcoming MSCI decision point is a less important signpost than

Morgan Stanley Asia (Singapore) Pte.+

a return to positive earnings growth Mayank Maheshwari

Equity Analyst

Uncertainty lingers over the policy backdrop and macro outlook: This uncertainty Mayank.Maheshwari@morganstanley.com +65 6834-6719

will likely continue to weigh on sentiment, keeping the capex cycle weak, and Divya Gangahar Kothiyal

potentially spill over into job creation and consumption. Equity Analyst

Divya.Gangahar@morganstanley.com +65 6834-6438

Selvie Jusman, CFA

Key drivers that we think could improve the macro outlook are:

Selvie.Jusman@morganstanley.com +65 6834-6517

1. A pickup in the pace of policy reforms, which could lift corporate and

Da Wei Lee

investor confidence; Equity Analyst

2. A sustained rise in commodity prices, leading to an improvement in terms of Dawei.Lee@morganstanley.com +65 6834-6510

Vivek Rajamani

trade; or Equity Analyst

3. An upturn in the investment cycle, led by public capex. Vivek.Rajamani@morganstanley.com +65 6834-6740