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Jakarta Post

Economic Outlook 2020: Business earnings to recover from double dip

  • Mulya Chandra and Deyi Tan


Jakarta   /   Wed, December 18, 2019   /  05:02 pm
Economic Outlook 2020: Business earnings to recover from double dip Illustration of economic growth (Shutterstock/Number1411)

Businesses endured a relatively challenging 2019, but we expect corporate earnings growth to recover in 2020, supported by improving domestic and external macro stability. We project a corresponding equity market upside of around 13 percent in 2020, based on our MSCI (Morgan Stanley Capital International) Indonesia index target of 7,800. We forecast a 10 percent corporate earnings growth in 2020, up from 1 percent in 2019. Strengthening business confidence as a new Cabinet settles in, gradually improving economic growth and receding global headwinds are key drivers of our outlook. The Cabinet formation should foster business conviction, as the new ministers are set to bring fresh initiatives, particularly in empowering state-owned enterprises (SOEs) and in tourism, as well as a transformational education system, which are essential for the human capital reform agenda. Accelerati...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.