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View all search resultsJ.P. Morgan expects earnings to improve amid a rising stock market
The IDX Composite faced turbulence amid external factors, including political unrest in late August and Monday’s announcement of Finance Minister Sri Mulyani Indrawati’s dismissal.
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Henry Wibowo, Head of Research & Strategy at J.P. Morgan Indonesia (left), and Gioshia Ralie, CEO & Senior Country Officer at J.P. Morgan Indonesia discussed Indonesia’s economic outlook and stock market prospects at a media briefing on Sept. 4 in Jakarta. (J.P. Morgan /- )
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.P. Morgan expressed confidence in the rupiah and forecast a rebound in corporate earnings next year. Meanwhile, the investment bank has been cautiously optimistic about Indonesia’s investment climate amid recent political unrest.
According to J.P. Morgan Indonesia CEO Gioshia Ralie, the widespread political unrest since the end of August has not deterred foreign investors from attending business forums.
“The demonstrations are part of a process aimed at improvement, to build more discipline, greater transparency and confidence in the system. We hope the government, together with parliament, will take the right actions so reforms can be implemented more decisively and efficiently,” Gioshia said at a press briefing on Thursday.
Indonesia’s 2026 budget, which targets 5.4 percent gross domestic product (GDP) growth and a 2.5 percent deficit, was described by J.P. Morgan as a “good balance,” though execution and strict fiscal discipline will be crucial.
Read also: State response to protests echoes darker times
On equities, J.P. Morgan Indonesia’s head of research and strategy Henry Wibowo noted that although the Indonesia Stock Exchange (IDX) Composite index briefly surpassed 8,000 points in August, above the firm’s 7,500 target, the rally was not underpinned by earnings.
“When we look at corporate profit growth, or earnings per share growth, this year’s forecast is minus 5 percent. But next year we expect a rebound of plus 5 to 10 percent. Because this year is coming from a low base, we anticipate a recovery in 2026, supported by the upcoming monetary easing cycle,” Henry said at the same press conference.
